| | |  Puerto Vallarta Real Estate | August 2009 
Understanding Regularized or Legalized Land
 Mike Hansen - PVNN
August 17, 2009
| | Riviera Property Group is one of a few companies that specialize in sourcing development, investment, and ejido land opportunities. Visit the website at EjidoLand.com. | |
It is quite common in Mexico to hear people speaking of regularized or legalized property, however it's also quite common for most people to have a misunderstanding of what this actually means.
Generally these terms are used to describe an ejido community that has completed the PROCEDE process, however the terms themselves have absolutely no legal significance. They are more or less just terms that have been invented by sales people hoping to paint ejido land with a different brush.
Although many real estate professionals, and even the US consulate are promoting the belief that all regularized or legalized land can be can be purchased and transferred to foreigners, it CAN NOT. Please note that this is a very dangerous assumption and it can create major problems for foreign investors.
It is very important to understand that regularized or legalized parcels (parcelas) are still EJIDO LAND, and they can only legally be purchased, sold, or transferred to ejido members (ejidatarios) or residents of the ejido community (avecindados) who have been officially recognized by RAN (National Agrarian Registry.)
If you have read any of my previous articles you already understand that ejido land parcels can be converted into private property and sold to foreigners, however PROCEDE is just the first step, and by no means does it mean the property is free and clear of potential problems. As a matter of fact, many foreigners that have experienced problems relating to ejido land have had problems with regularized or legalized land.
How to Obtain Full Non-Ejido Title
After ejido parcel titles have been issued by RAN through PROCEDE it is required of each individual ejido member to apply for full domain (Dominio Pleno.) The full title application requires the support of 2/3 of the entire ejido assembly, and is a process that is subject to problems. For more information about Dominio Pleno please visit ejidoland.com.
In the event that a full title application receives the support of the ejido community, and a full title is issued by RAN the next step is the Dercho de Tanto, which provides the spouse and children of the ejido member the first right to purchase the property at the offered price.
The second right to purchase the property is then offered to all members of the ejido community, and the third rights are then given to residents (avecindados) of the community. For more information about the Derecho de Tanto, click HERE.
Note that in the event that any of the people mentioned above decide to act upon their rights non-ejido members or foreigners have no legal right to the land, despite contracts made or monies paid to the seller.
The next step, which is usually referred to as the Derecho de Preferencia, provides the government the option of purchasing the property before an outside sale can occur. Although it is very unlikely, the government may choose to purchase properties suitable for infrastructure development, this could include railway lines, communication hubs, or property with a special government interest.
After the full title application, the Derecho de Tanto and the Derecho de Preferencia, the ejido member can cancel the registry of the land title with RAN. After the title has been canceled it must be re-registered in the public register of properties.
Only after the land is registered in the public register of properties can it be legal purchased or transferred to non-ejido members, including foreigners. Note that the transfer of title to a non-ejido member before all of the above has been completed is illegal, and any deal or contract made is null and void.
ADVISORY: The Full Title and Rights of First Refusal process is exact, the smallest error, omission, or failure to complete any step of the process correctly could risk your entire investment. It is never recommended for any investor to oversee this process without qualified legal assistance, nor is it advised to assume that any ejido member, or the local ejido assembly fully understands the process. All investors need an attorney that is very experienced with Agrarian Law.
With Riviera Property Group you can invest with confidence. Our full service legal firm has specialized in ejido land for close to a decade, and we have successfully secured, converted, and developed hundreds of ejido land parcels. For more information about Riviera Property Group click HERE or visit the website at EjidoLand.com. |
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