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What is an Ejido, and Can You Buy Ejido Property in Mexico?

Post by dean on Fri May 13, 2016 6:58 am

https://www.linkedin.com/pulse/what-ejido-can-you-buy-property-mexico-keith-williams

What is an Ejido, and Can You Buy Ejido Property in Mexico?
Sep 12, 2015326 views12 Likes5 CommentsShare on LinkedInShare on FacebookShare on Twitter
The ejido is a Mexican concept not well understood by foreigners. What is an ejido, exactly? The word, pronounced ay-hee-do, is thought to be derived from the Latin exitus, meaning "the way out." Presumably ejidos got their name from being located at the outskirts of towns and cities, and they were, and some still are, small Mexican villages. The ejido is defined as a community that has joint ownership of a piece of land, lives on the land, and practices joint agriculture on it. While this was the original intention, and was once an accurate description of ejido activity, more and more ejidos today exist as land where no one lives and no agriculture takes place.

The ejido was a concept practiced by the Aztecs. It has had a long and rocky history. When the Spaniards conquered Mexico, it was abandoned; it came back in again when the church was given the authority to hold lands in trust for the peasants. It went out again when the church lost favor in church lands. When the present Mexican constitution was adopted in 1917 resulting from the 10-year long Mexican Revolution, the ejido was revived. Large tracts of land were taken from wealthy landowners and divided up into ejidos for the peasants. Members of an ejido, called ejidatarios, could farm the land, live on it, enjoy it, pass it to their children, rent parts of it to third parties, but they could never own it or sell it. The mindset of the authorities, from the Aztecs on, seemed to be that peasants were like children, not intelligent enough to manage their own affairs, and so they must be protected by a kind of benevolent (or not-so-benevolent) despotism on the part of the emperor, the church, or the government.

And so, yes, the ejido is a way of owning property in Mexico, but this statement must be read with a realization that "ownership" may not mean the same thing to an ejidatario as it does to your average gringo. To an American, ownership means having what is known in real estate circles as "the bundle of rights" (possession, enjoyment, control, exclusion, and disposition). When we own a property, we can possess it, enjoy it, control it, exclude anyone we don't want from it, and dispose of it by selling it, giving it, exchanging it, or willing it to our heirs. To a Mexican, ownership appears to be largely a matter of possession.

This difference in cultural background and assumptions often causes misunderstanding when a foreign investor finds a choice piece of property that is ejido land and wants to buy it. The ejidatarios may tell the investor that they have ownership of the property, and of course they do, but not the same kind of ownership the investor is assuming.

Trying to buy ejidal property can be a risky investment if the investor is uninformed as to the legal pitfalls or unwilling to follow the prescribed procedure.

There is a way to get legal title to ejido property. In 1992 the Mexican government established a policy for regularizing ejido land called PROCEDE. Programa para Cesion de Derechos Ejidales (Program for cession of ejidal rights). Through this program, ejidatarios can convert their property to private property, which can then be sold.

There are three types of ejidal property: lands for community development, lands for common use, and individual parcels. The lands for community development cannot be sold or privatized. Lands for common use can be converted into what are called solares, individually owned parcels, which can be privatized and then sold. The individual parcels can also be privatized and sold. This procedure requires a vote of the entire ejido.. There must be a vote of 2/3 of those present to pass the resolution to privatize the land.

Investors should be aware of the complexities and avoid common pitfalls by using due diligence.

Recommendations:

Don't pay out large sums of money without receiving a receipt, contract, or agreement that states exactly what the money is to be used for and what is expected from each party.
Try to get as much documentation as possible for the property you are considering. Maps with dimensions and areas are very helpful.
If you are considering buying ejido land, work with a real estate agent who is knowledgeable about the process. Don't try to negotiate a deal yourself.

For more information about ejido land, or additional information on the real estate buying and selling process in Mexico, feel free to call me at 619.432.5133, or email: keithinbaja@gmai

dean

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Re: legal information

Post by dean on Fri May 13, 2016 6:56 am

facebook

https://www.facebook.com/groups/TalkBaja/

Carol Nicola Rafael Solorzano quick related question pls. If someone has a 9y11mo lease with a family, and other people sue and win the land beneath the house.... would the existing lease have to be recognized by the new owners? That is what I have been told, but...See More
Like · Reply · 1 · May 11 at 1:40am · Edited
Rafael Solorzano
Rafael Solorzano Carol, I disagree with your friend´s opinion.Read my article on Baja Legal Advice:

Renting a property in Mexico......See More
Like · Reply · 1 · May 11 at 7:59am · Edited
Rafael Solorzano
Rafael Solorzano Carol Nicola also, this should clear any doubts, I hope, it is not my intepretation, with regards to Leases and their binding power, this is what the Civil Code for Baja California:

ARTICLE 2282. The lease agreement shall not be rescinded by the death of the landlord nor that of the lessee, unless otherwise agreed by the parties.
ARTICLE 2283. If during the term of the lease, for any reason there is a change of ownership of the leased property, the lease shall remain in effect as agreed in the contract. With regard to the payment of rent, the lessee will be obligated to pay the new owner the rent as specified in the contract.
Like · Reply · 1 · May 11 at 8:00am · Edited
Carol Nicola
Carol Nicola Wow.... well that is good news Rafael Solorzano... and the specific ley in the civil code is exactly what I needed. Thank you so much!
Like · Reply · 1 · May 11 at 10:02am · Edited
Rafael Solorzano
Rafael Solorzano Carol Nicola, the Civil Code in Baja Sur is almost a carbon copy of Baja Norte's
Like · Reply · 1 · May 11 at 10:08am
Rafael Solorzano
Rafael Solorzano Also, if the property you are renting was sold and the owner/landlord failed to grant you, in writing, what is known as "first right of refusal", that transaction could very voided.
Like · Reply · 1 · May 11 at 10:10am · Edited
Carol Nicola
Carol Nicola First right of refusal.... to continue the land lease you mean?
Like · Reply · May 11 at 10:14am
Rafael Solorzano
Rafael Solorzano The Right of First Offer or Right of First Refusal, clause provides that, in the event that the Landlord opts to sell the Premises or lease an additional specified space, the Tenant must be given the opportunity to purchase or lease the space. BTW, even in light of the fact that many, if not most, leases do not include this clause, the Civil Code does clearly stipulate that the Tenant has such right, regardless.

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Re: legal information

Post by dean on Sun Jan 24, 2016 9:02 am

http://mexico.usembassy.gov/eng/eacs_attorneys.html
http://mexicocity.angloinfo.com/af/639/immigration-lawyers.html
http://www.mexperience.com/lifestyle/living-in-mexico/visas-and-immigration/

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Re: legal information

Post by dean on Sat May 23, 2015 10:39 pm

https://drive.google.com/file/d/0B_dcjtl_ApLTaWxBbnNIdnRoejg/view

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Re: legal information

Post by dean on Fri Nov 15, 2013 9:00 pm

Here's an article dated 2008.

We are all familiar with the “Good Samaritan Law”. This law protects you from becoming liable for helping in an emergency situation. The Good Samaritan law allows you to give aid within your scope of expertise at a car accident or other disaster without being sued for any reason in the performance of your aid. Mexico has no such law. You as a visitor or citizen can not give any aid at anytime or anyplace with out breaking the law. The only organization able to perform emergency services outside of a hospital or medial clinic in Mexico is the Cruz Roja. Do not stop and help! Call for help 065 or at lakeside 765-2308. You will be at risk of arrest, deportation or being financially responsible. To understand how this came about, we must look at its history.

As early as 1898, the Spanish Red Cross approached the Mexican Government to inquire about the emergency services available in the Republic. At that time, such services were provided by the Mexican Army. The Mexican President, Porfirio Diaz, had been a general, had strong ties to the Military, and showed no interest in establishing a Mexican Red Cross. By 1907, however, the Mexican Army had fallen on hard times. Diaz, still President, had cut back on its funds, producing inefficiency and dissatisfaction among career officers.

On August 2nd of that year Mexico recognized the Geneva Convention and on February 21, 1910, a presidential decree recognized the Red Cross, but made it an auxiliary of the Army. In 1919, it was recognized by the International Red Cross and received a charter in 1923. Since then, the organization has been prohibited from accepting any financial aid from any government agency. It is financed by private donations only. It also severed its ties with the Army. Now, the Army gave up its role as the provider of day to day emergency care, shifting the burden to the Cruz Roja Mexicana. Thus, it became the sole designated caregiver in situations normally handled and paid for by governments in most parts of the world.

Today, both the Mexican Red Cross and the Mexican National Health Service, IMSS, maintain hospitals in all major cities. Larger cities also run Municipal Hospitals. However, the IMSS hospitals serve only those who work for companies that provide them with coverage. Those who are not covered by their employers still must turn to either a Red Cross or Municipal Hospital for free care. By and large, emergency health care in big cities is good. That is not the case in small towns and villages.

Those who live outside large municipalities and are unable to pay for private care, are totally dependant on the Red Cross to provide emergency care and transport them to the nearest hospital that offers free service. The needs of the less affluent members of the community, who have non-emergency medical problems, are handled in a free clinic that operates 6 days a week. It provides a consultation with a doctor and in most cases, free medications are dispensed (Central Salud). The Delegation requests a donation after the services are rendered, but what is received seldom cover costs. Fortunately, the Delegation has two auxiliary groups. The Cruz Roja International Volunteers, largely non-Mexican and the Damas of the Cruz Roja, mostly Mexican ladies, run fund raising events that keep a monthly deficit under control, but just barely.

Again, it is sad but do not offer aid in an emergency unless you are willing to suffer the possible consequences. What you CAN do is to contribute to the Cruz Roja on a regular basis. We have a great need for monthly and annual contributions as well as the support of the fund raising projects run throughout the year.

Cruz Roja depends on YOU! Anyone wanting to contribute to any of these needs please contact Norm Pifer at 766-0616 or Charlie Klestadt at 766-3671. You can, as always, find all our current information on our website at WWW.cruzrojalakeside.com
baja nomads

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tax law changes

Post by dean on Tue Sep 17, 2013 12:00 pm

http://www.otaymesa.org/wp-content/uploads/2013/09/Tax-Alert-06-2013-Mexican-Tax-Reform.pdf?utm_source=Mexico+Releases+Fiscal+Reform+Package-THIS+FRIDAY+with+Deloitte+2&utm_campaign=MBID2&utm_medium=email


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Re: legal information

Post by dean on Sun Jul 21, 2013 8:04 am

http://yucalandia.com/big-mistakes-people-make-with-mexican-lawsuits-the-article/

Big Mistakes People Make with the Mexican Police and Mexican Lawsuits
July 20, 2013
There has been a fun article, created by the well-experienced attorney:
~ Lic. Spencer McMullin ~
published on various Mexican expat web-forums and websites – describing the vagaries of Mexican law.

We much appreciate Atty. McMullin’s (aka Spencer, or “Intercasa” on expat webforums) ongoing and ~ very generous ~ efforts to consistently help foreigners in Mexico ~ with free advice ~ on handling legal issues very well, esp. when dealing with the Mexican Gob., the Mexican police, and Mexican Immigration and Aduana, and the Mexican judicial system. We offer kudos and high praise to Spencer’s efforts, and we invite you to check out his very good site at chapalalaw.com . Finally, we offer the following article (including minor stylistic edits) of his latest very good insights (as published on Mexconnect):

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legal information

Post by dean on Sun Jul 21, 2013 8:03 am

http://chapalalaw.com/

http://chapalalaw.com/


Last edited by dean on Sun Jul 21, 2013 8:06 am; edited 1 time in total

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Re: legal information

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