Last updated on January 14, 2018
Mexico City, Q.R. — In recent years, many parts of Mexico have become an attractive market for the sale of tourist land in regions such as Los Cabos, Playa del Carmen, Tulum and Puerto Vallarta among others.
In most cases, the price of the properties sold are in the US dollars and, depending on where one decides to buy, the cost per hectare can range from $30,000 to $100,000 dollars.
Although this type of real estate can be a good option for those with purchasing power, there are several aspects to consider before carrying out the transaction.
Jorge Paredes, director of realty firm Realty World Mexico, says that before making the decision to purchase, a series of steps should be taken to ensure the certainty of the operation since many of these tourist areas were previously ejido lands.
Ejido land in the Mexican government system is an area of communal land used for various purposes (agriculture, for example) on which community members (of that land) individually farm on designated parcels but collectively maintain communal holdings. Held in traditional Indian system of land tenure, they have communal ownership with individual use.
Ejido land can consist of cultivate, uncultivated, pastureland and fundo legal (townsite) land, however in most cases it is cultivated land separated into individual family holdings that cannot be sold, but can be handed down to heirs.
When landowners change their records to private property, there are often problems with land ownership.
“My recommendation is to have a good study of the decree, to see that there is legal certainty that they are acquiring a good without any problem and that in the future there will not come another person who has a legal right that can take away the property,” Paredes explained.
He also added that another aspect to be taken into consideration is to ensure that possession of the land is not duplicated and to know exactly who it belongs to with the goal of avoiding future conflicts in which after making the purchase, rightful owners appear for the property.
“Another point is to review measures and neighborhoods because it is not wise to acquire land where they are told that they are buying a piece of 2,000 square meters, but do not verify that the surface is effectively there and that there are no conflicts of boundaries or terrain,” he explained.