2. Buying Ejido Land
Ejido land is not private property and cannot be bought and sold. A foreigner cannot buy Ejido land; it can only be sold to Mexicans. A Mexican citizen wishing to purchase Ejido land must have the agreement of the whole community that 'owns' the land and it is not often clear who the owners (or their ancestors) are. If an Ejido is sold without the agreement of all (potential) owners, the buyer can risk a legal battle after the purchase which, in the worst case scenario, can lead to a loss of the land.
The safest way to acquire Ejido Land is to go through a privatization process that transfers the property to a Mexican Citizen by means of an escritura (a fee simple title). Transferring ejido land into private ownership is a time-consuming process which requires in-depth knowledge of Mexican estate law, or the services of a company, or an attorney, with experience in this field.
Until an Ejido has been transferred to private ownership, foreigners cannot acquire "ownership" of Ejido land. However, once the property has been privatized, it can then be sold to a foreigner through a Fideicomiso (bank trust).
3. Settling in Ejido Land
Since Ejido land is much less expensive than regular land, many foreigners have elected to take the risk and attempt to buy Ejido property. This is done through a private contract to buy the land.
Ejido landowners have the legal ability to enter into usage contracts with prospective buyers with an agreement often called a “Usufruct Purchase Contract” that provides use and occupancy rights to the parcel for an extended period, however, they should recognize that they have absolutely no rights, until they are able to legally obtain title through a Fideicomiso (bank trust).