Ejido Land vs. Private Property in Mexico: Don’t Risk Your Investment

Thinking about buying real estate in Los Cabos or anywhere in Mexico? The market offers incredible opportunities for vacation homes, developments, and long-term investments. But one misstep, like unknowingly purchasing ejido land—can put your entire investment at risk.

Here’s what you need to know to protect yourself.

What Is Ejido Land?

Ejido land is communal property regulated by Mexico’s agrarian law. It was originally granted to communities for agricultural use and cannot be sold directly to private buyers unless it goes through a formal privatization process (regularización).

For foreigners, this is even more critical: you cannot legally own ejido land under any circumstances.

Big Risks of Buying Ejido Land

Buying ejido land, knowingly or unknowingly, comes with serious risks:

• No Clear Title

• Ejido land isn’t titled in the same way as private property. It lacks a proper escritura pública and registration in the Public Property Registry.

• Foreign Ownership Restrictions

• Ejido land cannot be sold or transferred to foreigners, even through a trust (fideicomiso).

• High Risk of Fraud and Disputes

• Many “sales” of ejido land are informal and unenforceable, leaving buyers with no legal recourse.

How to Avoid Costly Mistakes

Before buying land in Mexico, take these steps to ensure it’s private property and legally transferable:

• Verify the Title

• Request a certified copy of the escritura pública (public deed) and confirm it’s registered in the Public Property Registry (Registro Público de la Propiedad).

• Work With a Closing Attorney and Notary

• A qualified real estate attorney will check for agrarian claims, disputes, and ensure the property is safe for purchase. The notary (notario público) formalizes the transaction and ensures compliance with Mexican law.

• Conduct Full Due Diligence

• Have professionals investigate zoning, permits, and potential liens or claims before committing.

• Don’t Buy Land Until You’re 100% Sure

• In Mexico, only private property (properly titled and registered) can be legally sold to foreigners. Ejido land may seem like a bargain, but the risks far outweigh the potential savings.

At Cabo Closing Services, we help foreign buyers navigate the Mexican legal system and avoid costly mistakes.

📩 Thinking about buying land in Los Cabos? Let’s connect, I’ll guide you every step of the way to ensure a safe, legal, and stress-free transaction.