Dreaming about a sandy slice of the East Cape but unsure what you can legally buy? You are not alone. The biggest early decision is understanding the difference between ejido land and privately titled land. In this guide, you will learn the legal basics, the real risks, and a practical due diligence path tailored for foreign buyers in Los Cabos. Let’s dive in.

Ejido vs titled land

What is ejido land

Ejido land is communal land governed by Mexico’s Agrarian Law. The ejido assembly manages the land, and individual members, called ejidatarios, often hold use rights, not private ownership. Key papers include assembly minutes, parcel certificates, and records from the agrarian registry.

What is titled land

Titled land is private property recorded with a notarized deed. The deed is registered in the local Public Registry of Property, which shows the owner and any liens. A clean registry entry is the core proof of ownership and marketable title.

Why the difference matters

On the East Cape, many coastal parcels began as ejido. Foreign buyers in Mexico’s coastal restricted zone usually purchase through a bank trust, called a fideicomiso, or a Mexican corporation for commercial use. A bank trust requires private property with a recorded deed. Banks and notaries typically will not create a fideicomiso over ejido land unless it has been legally converted to private property and recorded.

Foreign buyer basics

The restricted zone

Areas within 50 km of the coast are the restricted zone. Foreigners generally do not hold title directly there. You will use one of two structures:

• Fideicomiso: a Mexican bank holds title for your benefit. You enjoy owner rights, pay setup and annual fees, and can sell, will, or improve the property subject to permits.
• Mexican corporation: used mainly for commercial strategies. For a personal residence, most buyers use a fideicomiso.

Remember, both options require that the land already be private property.

Common East Cape risks

• Unconverted ejido sold as private: Sellers sometimes present ejido parcel rights as if they were private title. Without conversion and registration, you risk losing the deal or entering a long dispute.
• Unauthorized sales: An ejidatario may try to sell without the ejido assembly’s approval. Without proper authorization and agrarian registration, the sale can be voided.
• Boundary conflicts: Informal subdivisions and old surveys can create overlapping claims or mismatched boundaries.
• Environmental and coastal limits: Federal maritime-terrestrial zones and environmental rules can limit where you can build, especially near the beach or sensitive habitats.
• Access and services: Some remote tracts lack legal road access, water rights, or electricity. Development can require significant investment.
• Title encumbrances: Titled properties can carry liens, unpaid taxes, easements, or utility debts. Ejido parcels may have communal obligations.
• Financing hurdles: Banks generally avoid financing ejido land and will not establish a fideicomiso until land is privately titled and clear of agrarian issues.

Due diligence checklist

Step 1: Gather seller documents

Ask the seller or listing agent for:

• Seller ID and proof of authority to sell.
• If ejido: certified ejido assembly authorization and agrarian registry records.
• If titled: current notarized deed and prior deed chain.
• Cadastral certificate and recent property tax receipts.
• Surveys, topographic plans, boundary markers, and recent utility receipts.

Step 2: Search public records

Have your attorney and notary check:

• Agrarian Registry for ejido status, parcel rights, assembly acts, and any conversion filings.
• Public Registry of Property for the recorded owner, liens, servitudes, or mortgages.
• Municipal planning for land-use zoning, permits, and legal access.
• Environmental authorities for coastal setbacks, federal zones, and any environmental assessments if you plan to build.
• Cadastral office to confirm surface area and survey alignment.

Step 3: Verify on the ground

• Confirm legal right-of-way and the physical condition of access roads.
• Verify proximity and feasibility of water, septic, electricity, and communications.
• Look for encroachments, informal fences, or improvements by third parties.

Step 4: Extra checks for ejido

• Confirm a legally convened ejido assembly has authorized the specific sale or conversion. Get the certified assembly minutes.
• Verify agrarian registry entries that show transfer of rights or completed conversion. Without this, a standard private sale cannot close properly.
• Ask if any communal or use rights remain that could affect your intended use.

Step 5: Financial and closing items

• Confirm property taxes are current.
• Clarify municipal or federal transfer taxes and impact fees.
• Decide your structure as a foreign buyer and obtain quotes for a bank trust and annual fees.
• Involve a Notario Público to prepare, certify, and record closing documents.

Timelines and expectations

If the land is already titled

A clean sale using a bank trust can often close in several weeks to a few months, depending on bank processing and document readiness. Your notary will prepare the closing, and you may sign in person or grant a power of attorney.

If the land is ejido and needs conversion

Conversion requires a formal ejido assembly process, agrarian registry filings, and then recording in the Public Registry. This can take many months and, if contested, years. Do not pay the full price upfront based on a promise to convert. Use escrow and clear milestones if you choose to proceed.

Interim alternatives

Some buyers consider long-term leases or surface-rights agreements with ejidos. These are specialized, must be documented carefully, and do not offer the same protections as private title. They can also limit resale and financing options.

Red flags to avoid

• A seller who refuses to show agrarian or registry documents.
• A price far below market with pressure to pay in cash.
• Vague boundaries or “survey coming later.”
• Claims that “conversion is underway” without verifiable filings.
• Promises that a bank trust can be set up on ejido land before conversion.

Who you need on your team

• A bilingual real estate and agrarian attorney to lead due diligence and negotiate terms.
• A Notario Público to prepare the deed, certify the transaction, and record it.
• A licensed surveyor to verify boundaries and access.
• A Mexican bank to establish and administer your fideicomiso.

East Cape reality check

The East Cape is known for raw coastline and off-grid living. That appeal often goes hand in hand with access, utilities, and environmental constraints. Before you fall in love with a view lot, confirm legal access, realistic utility solutions, and coastal or habitat restrictions that could affect your plans.

Next steps

If you are weighing ejido versus titled land, start with documents and independent verification. Build a professional team early, and never rely on verbal assurances. For a clear plan tailored to your goals, reach out to an advisor who knows the East Cape land history and closing path end to end. Connect with Dawn Pier to discuss your site short list, due diligence approach, and trust or closing strategy.

FAQs

What is ejido land in Mexico?

• Ejido land is communal land managed by an ejido assembly. Individual members may hold use rights, but it is not private property unless formally converted and recorded.

Can foreigners buy ejido land on the East Cape?

• Not in the usual way. A bank trust for foreigners requires private title. Until ejido land is converted and recorded as private property, banks and notaries typically will not close a standard sale.

How do I verify a parcel is titled?

• Ask for the notarized deed and have your attorney and notary search the Public Registry for the recorded owner, liens, and encumbrances. Confirm that surveys match cadastral records.

How long does a fideicomiso setup take?

• For a clean, already-titled property, expect several weeks to a few months, depending on the bank and document readiness.

What extra costs should I expect in Los Cabos?

• Budget for notary and registration fees, transfer taxes, bank trust setup and annual fees, legal and survey costs, and potential expenses for access, utilities, or environmental permits.