After the 1910-1917 Revolution, most of Mexico’s lands were divided into Ejidos: large land parcels which were owned collectively by many different people —often groups of families— who had the right to work the land, usually for growing crops and raising livestock. Large swathes of Ejido land continue to exist today, and while there is a legal process to ‘convert’ Ejidos to legally-titled property, the process is involved and expensive. It’s usually undertaken by specialist companies on large parcels of land which are then sub-divided and sold to property developers for use in residential, commercial, and tourism developments. If you’re seeking something off-the-beaten track in Mexico, you might find that certain properties you’re offered —some with very desirable/idyllically-located homes built on them— are not legally titled but instead classed as communal property. These types of properties are most usually situated in rural or semi-rural areas and might only be available for purchase under an Agrarian arrangement.

Practicalities of land possession vs land title

Many people purchase, pass quiet enjoyment of, and sell their right of possession of untitled properties without any trouble. However, if a property you fall in love with is only available on Agrarian terms, it’s as well to be aware of the practicalities and risks.

No legal title

Property designated to you under an Agrarian arrangement does not constitute legal title: your possession of it holds no force in Mexican civil law and any matters related to it will only be heard by the Agrarian Court (or Assembly) which adheres to its own code.

No title deed

When you purchase right to possession instead of title, you will not receive a Title Deed enforceable in a civil court and the property will not be registered on the national property register. Instead you receive two important documents: • Cesion de Derechos (Transfer of Rights) and • Constancia de Posesion (Record of Possession) The first document records the previous holder(s) yield of their possession of the land, and the second records your current possession of the property. When you sell, you will yield possession in the same way that the previous holder yielded to you. This process is managed entirely through the local Comuneros, not the civil courts. The property might or might not be listed on the national agricultural land register.

No finance, collateral value, or title insurance

These properties can only be purchased with your own money: you cannot take out a mortgage on them; you cannot use them as collateral; and you cannot obtain title insurance for these properties.

Difficult or impossible to insure the property

Civil law requires you have to have legal title to something before you can insure it. It’s difficult (and may be impossible) insure untitled properties, because when you claim on a policy, the insurer will demand to see proof of legal title, especially for larger claims; thus any structural damage caused by earthquakes, floods, storms, etc. may not be insurable and you’ll need to pay building repair or reconstruction costs out-of-pocket. If you hold land on agrarian terms, cross-check this issue with the insurance agent or company and if they say they’ll insure untitled property, obtain unambiguous pledges in writing to ensure that claims are not rejected after the fact due to an absence of legal title.

Disputes cannot be settled in Mexican civil law courts

If a dispute arises regarding the property, you must abide by the code of the Agrarian Court (sometimes referred to as Asambleas, or Assemblies) to resolve it; you cannot seek any remedy through Mexican civil law courts. to. Here are some tips if you are intending to purchase land on agrarian terms.

Due diligence

A good realty agent will be open and transparent about the property’s legal status; however the ultimate responsibility lays with the buyer. If you are buying property in (semi)rural areas, a unique property, or a brand-new property, it’s important to be mindful about the legal status of the land the property is on (or the land you intend to build on). Choose a good Notary Public, and consider also hiring a lawyer specializing in land matters to make additional cross-checks if you harbor any doubts. Ask direct questions regarding the property’s legal status and title.