Understanding Ejido Land in Puerto Vallarta: What You Really Need to Know Before You Build Your Dream

Understanding Ejido Land in Puerto Vallarta: What You Really Need to Know Before You Build Your Dream

If you’ve spent any time exploring the real estate market in Puerto Vallarta (or anywhere in Mexico), chances are you’ve come across listings—or whispered rumors—of “ejido land.” Maybe the price seems too good to be true. Maybe someone tells you, “Don’t worry, it’s easy to convert.” Or maybe you’re just curious. Either way, here’s what you need to know.

So, What Is Ejido Land?

Ejido land is a form of communal property created after the Mexican Revolution, meant to give farming land to rural communities. It’s not privately owned—it’s collectively held by the local ejido community and governed by specific Mexican agrarian laws. While individual members (called ejidatarios) can use and even inherit rights to specific plots, the land itself is not privately titled—and can’t just be bought and sold like traditional real estate.

Why Can’t Foreigners Own Ejido Land?

This one’s easy: because it’s not for sale.

Ejido land is governed under a completely different system from titled, private land. Mexican nationals can’t “own” ejido land in the traditional sense either—it’s a right to use, not full ownership. But even more to the point, foreigners (that includes Americans and Canadians!) are prohibited from directly purchasing ejido land. It doesn’t matter if your Spanish is amazing or if the view is next-level. Legally, it’s a no-go.

“But My Friend’s Friend Bought Ejido Land…”

What often happens is that foreigners think they’re buying ejido land—maybe through a handshake deal or a lease agreement—but there’s no true legal protection. Some go through a Mexican “straw buyer” (also illegal), or they sign a lease and build, hoping to secure it later.

Here’s the risk: under Mexican law, if you build something on ejido land and your lease ends, that structure belongs to the land. Not to you. It’s considered part of the land (accesiones). You could spend hundreds of thousands of dollars… only to walk away with nothing.

Can Ejido Land Be Privatized?

Yes—and this is where it gets a little more promising. Ejido land can be converted to private property through a legal process called “dominio pleno.”

Here’s how that works:

1. The ejido community must vote to convert the land.

2. The land is formally surveyed, titled, and registered in the Public Property Registry.

3. Only once this process is complete can the land be sold as private property to nationals—or held in trust for foreigners.

But make no mistake: this must be done before any sale happens. If someone tells you they’re “in the process” of regularizing ejido land, your best move is to smile politely… and walk away until the process is 100% complete and the title is registered.

What About Leasing Ejido Land?

In some cases, it is legal to lease ejido land. Mexican law allows for long-term leases—sometimes up to 30 years. But again, know the fine print:

• You’re leasing the land, not buying it.

• If you build on it, your building becomes part of the land.

• When the lease is up, so is your claim.

So unless your goal is to run a temporary project or you’re working closely with an attorney and agrarian expert, leasing ejido land can be more trouble than it’s worth for most residential or investment purposes.

Bottom Line:

Ejido land isn’t automatically a deal-breaker, but it’s definitely not a casual investment. If you’re considering any kind of land purchase in Puerto Vallarta—or the surrounding areas—make sure you’re working with professionals who understand the difference between titled and untitled land, and who can verify legal ownership through the Registro Público.

If you’re dreaming of building in paradise, make sure the land beneath your feet is solid—legally and literally. Not sure where to start? I’m happy to help.

Will Hutt | Coldwell Banker La Costa

Puerto Vallarta Real Estate Specialist

+1-239-691-0782

BeachPleasePVR@gmail.com