REGULARIZATION OF THE LAND IN OAXACA

By Dolores Pérez Islas

CEO SILMEXICO

 

Mexico is a very diverse and multicultural country that reflects its wealth in each of the industrial, financial, tourist and historical destinations that the country is composed of. All of these destinations have great investment potential due to their competitive and geographical advantages.

Due to these advantages and the growth of the cities, urbanization policies have been carried out at the federal level to promote the regularization of land throughout the country, especially in the states with a greater lag of irregularities of properties. According to CORETT[1] information, Oaxaca has the largest backlog of irregularities for properties along with the states of Mexico, Puebla, Guerrero, Morelos, Jalisco, and Sinaloa.

There are many people in Oaxaca who do not have deeds of their properties because of land ownership. It is estimated that over 80% of land ownership is “ejidal[2]” and “communal[3]” being a little less than 20% private land. Hence, there are currently various mechanisms such as compensation for expropriation that encourage investment and to ensure the legal security of “communal” or “ejidal” land.

These mechanisms are based essentially on paying the “ejido” or community for the land that the government expropriates. This is the only way in which the “ejidos” will become private property following all of the guidelines issued by the municipal authority.

For land regularization, CORETT generally requests the following:

Of the beneficiaries in the individual:

  • Check that they live in a land located on land expropriated by CORETT

Of the beneficiary communities and localities:

  • That the irregular settlement is located in “ejidal” lands, “communal”, and federal properties and in the surface that will be expropriated.
  • That the ejido or the community has the basic documents required: plan for the extension and extension of the “ejido”, acts of execution of presidential decrees, previous expropriations, and plans for confirmation and titling of communal assets.
  • That the irregular settlement complies with the following aspects:
  1. The level of densification required.
  2. Location and access to the settlement.
  3. Harmony with the degree of consolidation and economic factors in the area.
  4. Incorporation of free land into urban development and housing.

Of the beneficiaries in the individual:

  • State and municipal governments and natural or legal persons that they designate, who show interest and request free land to develop urban equipment and construction of social housing.

Of the beneficiary communities and localities:

  • State, municipal, and agrarian authorities interested in specifying with the CORETT delegations the incorporation of areas of social land free and necessary for urban development and housing, and comply with the established documentary, technical and physical requirements.

The benefits are diverse and range from greater legal certainty. It is possible to apply for mortgage loans to improve or expand the dwelling until the commercial value of the property increases.

This is how the regularization of land tenure is reflected in the granting of a title (deed) of the regularized property. Titles of property are delivered directly to the beneficiaries. While the agrarian nucleus are compensated for the expropriation of the lands for their regularization, the compensation must be in accordance with the Agrarian Law (directly to the beneficiary).

Through these mechanisms, it is feasible to provide legal certainty to investors who, for commercial or residential reasons, wish to acquire a property in an “ejido” or commune. Undoubtedly, it is very important that each of the parameters described here are fulfilled for regularization. That is why it is highly recommended to have the advice of a lawyer that is specialized in agrarian law, as well as a real estate agent with experience in this type of legal transition.

At SILMÉXICO INVESTMENT PROPERTIES, we have a wide range of partners and collaborators who can help you in the planning the execution of your investment in Mexico, particularly in Oaxaca, without any problems.


[1] The CORET is the Commission for the Regularization of Land Tenure whose function is the regularization of land mainly in urban areas where cities are growing.

[2] In the Mexican system of government, an ejido is the land of a group of people, usually farmers who produce the land. From its origin the ejidos are rural communities whose agricultural production, livestock or forestry has economic purposes, but also for self- consumption. The ejidos possess legal personality and own representation with the municipal, state and federal authorities.

[3] The communal land belongs to a community and whose use may be public or private. The land is part of the  common use.

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