It’s often said that if you’re offered property from an Ejido, you should avoid it due to the complex ejidal process that many sales agents and lawyers are unfamiliar with. The agrarian issue is a specialized field.
But if someone tells you, «It already has a deed!», it might seem like everything is in order—but that’s not necessarily the case.
If the property you’re considering was once part of the agrarian nucleus of an ejido, there are specific processes you must follow to avoid future problems with the deeds being nullified after leaving the Ejido.
First, consult the map from the National Agrarian Registry at National Agrarian Registry.
Also, if you’re buying beachfront property, check with the ejido to see if it borders the Federal Maritime Terrestrial Zone (ZFMT), as some ejidos have a strip of common-use area between private property and the beachfront.
In this modern era in Baja California Sur, especially after the «COVID-19 Bubble» phenomenon, it’s essential to be thorough. At Klein Real Estate, we’ve handled several transactions where, by conducting in-depth investigations of the deed histories presented to us, we delve deep to verify how the Right of First Refusal was presented, whether the price was specified, and if there’s a reference for it.
Once the ejido adopts full ownership (it becomes private property) according to Articles 81 and 82 of the Agrarian Law, the first sale of such land must adhere to the Right of First Refusal as stated in Article 84 of the Agrarian Law. Here’s what the law says:
“Article 81: When most of the parcels of an ejido have been delimited and assigned to the ejidatarios under Article 56, the assembly, with the formalities provided by Articles 24 to 28 and 31, may resolve that the ejidatarios adopt full ownership over said parcels, complying with the provisions of this law.
Article 82: Once the assembly adopts the resolution, the interested ejidatarios can assume full ownership over their parcels at their discretion. They must request the National Agrarian Registry to remove the lands from the Registry, which will issue the respective property title to be registered in the Public Property Registry of the locality.”
Once the cancellation of the registration in the National Agrarian Registry is complete, the lands will no longer be ejidal and will be subject to common law provisions.
“Article 84: In the first sale of parcels over which full ownership has been adopted, the relatives of the seller, people who have worked those parcels for more than a year, the ejidatarios, the residents, and the ejido community, in that order, will have the Right of First Refusal. They must exercise this right within thirty days from notification. If the notification is not made, the sale can be annulled.”
The ejidal commissariat and the vigilance council are responsible for ensuring compliance with this provision.
Notification to the commissariat, with the participation of two witnesses or before a public notary, will serve as personal notification to those entitled to the Right of First Refusal. The commissariat must immediately publish a list of the goods or rights being sold in the most visible places of the ejido.
“Article 86: The first sale to people outside the ejido community of parcels over which full ownership has been adopted will be free of federal taxes or duties for the seller and must be made at least at the reference price established by the Commission of Appraisals of National Assets or any credit institution.”
So, it’s not only about presenting the Right of First Refusal but ensuring it is properly notified and has a referenced value. At Klein Real Estate, we can guide you through this intricate process to ensure a smooth and secure transaction.