Portus De Cortez
 
  Ownership
 

Due to the restricted zone regulations that prohibited foreigners from buying Mexico realestate within sixty miles of an international border, or within thirty miles of the Mexican coast, property ownership in Mexico hasn’t always been easy. However, the Mexican government identified a need to cater to those that wanted to make real estate investments in Mexico, and with this in mind a solution was developed to enable this to happen.

This solution is known as a Mexican Property trust, otherwise known as a ‘Fideicomiso’. This is a safe, simple and fully renewable Mexican Property Trust, which enables average consumers that wish to vacation or retire in Mexico to own their own stunning property. Like an estate trust, the Fidecomiso gives you, the purchaser, all rights of ownership.

The owner has all the rights that an owner of property in the U.S. or Canada has, including the right to enjoy, sell and improve the property.

 
     
       
  Fidei... What?

To properly understand how land ownership in Mexico works today, it is necessary to understand how Mexico’s protective laws regarding its ownership have been shaped by Mexican history.
The Mexican Federal Constitution, drafted in 1917, imposed new laws and restrictions on foreign ownership as well as on ownership of land by the Church. Article 27 of the Constitution allows Mexican Nationals and Mexican companies to own property, but restricts foreigners from owning land within certain restricted zones. Interestingly, it is believed that the U.S. was involved in the new zoning laws in an effort to prevent the installation of foreign military bases on its borders or coastlines. This "restricted zone" is defined as property within 100 Kilometers from any Mexican border or within 50 Kilometers of any Mexican coastline including all Baja Peninsula.

In addition to limiting foreign ownership of Mexican soil, the 1917 Constitution also created a concept of inalienable, cooperative land ownership - known as the "ejido" - which was designed to protect Mexican peasants’ right to cultivate land. The people were given ownership of these properties and were allowed to farm and cultivate and receive the profit from their efforts. Over 50 million acres of land were back in the hands of Mexican peasants, even though the Federal government still technically owned it.

In 1992, Mexico spearheaded a new agrarian law that for the first time allowed "ejidatarios" or members of ejido cooperatives to sell ejido properties. The 1992 Agrarian Law recognizes property rights within the ejido and allows the owner of record to sell or lease the property to a non-ejido member. The property can be removed from the National Agrarian Registry (removed from Federal control) and placed in the public land registry, thus allowing it to be sold or leased. Today, thousands of acres are being converted from ejido to private property and being sold or leased, and there are well over 50 million acres of land that will go though this process (whether leased or sold) over the coming years.

 

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