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Let's Go2Mazatlan - Articles History of Real Estate Ownership in Mexico
Mexico won its independence from Spain in 1822 and it took 95 years for the creation of the current Mexican Constitution of 1917. • 1822-1910 STRUGGLES After Mexican independence from Spain, there were struggles with economic decline and overall instability. The two institutional bases of power, the church (who owned nearly one-half of the nation’s land) and the military fought for the upper hand. During the period (1821-1860) Mexico had 50 presidents, 35 which where army officers taking over after coups.
Years of instability ended in 1876 when General Porfirio Diaz became president after the death of Benito Juarez. Diaz modernized the Mexican economy. He encouraged exports and worked to bring Mexico in touch with other world economies. Land ownership was affected under Diaz’s rein. Collective property in Indian villages was abolished and in central Mexico, Indian lands were appropriated by landowners for their sugar plantations. Loss of land continued among the Indian peasants. Other pressures persisted: Mining of silver and gold was diminishing; there was a shortage of money (coins). The military take over and kept government rule from the citizenry. The pressure built as strikes and protests continued until the Mexican revolution began in 1910. When the workers and peasants revolted in 1910, Diaz was overthrown by a liberal, Francisco Madero, who was assassinated. Armed conflicts continued in the peasant revolt lead by Emiliano Zapata, Venustiano Carranza, Francisco Villa and Lázaro Cardenas. After Zapata was killed in an ambush in 1919, there was gradual consolidation of power in the new PRI party (which was the evolution of prior political parties during the tumultuous years after Independence). Consolidation now became single-party rule by PRI for more than 75 years. President Lázaro Cardenas began a program of land reform while also encouraging oil exploration and industrial expansion.
The Mexican Government granted to its people ownership of land, water, natural resources and airspace within the national territory. However, the one area the government maintained ownership of was agricultural areas. These regions were designated as ¨Ejidos¨ or agricultural cooperatives. Land was given to the people to farm and cultivate and the farmers received a profit for their efforts. This agricultural land could not be sold, leased or used for collateral. • 1972 CONSTITUTIONAL AMENDMENT FOREIGNERS COULD PURCHASE IN MEXICO OUTSIDE THE RESTRICTED ZONE A constitutional amendment know as the Foreign Investment Law allowed foreigners to purchase real estate anywhere in Mexico except the restricted zone. The Mexican Constitution also established the ¨restrictive zone¨ which created an area where foreigners could not own. The area is defined as property within 64 miles of any Mexican border with another country, or within 32 miles of any Mexican Coastline • 1993 THER LAND REFORM January 27, 1993 a new law was enacted and allowed for privatization and sale of Ejido land. This law recognized the Ejido owners and allowed for the registered owner to be removed from the National Agrarian Registry and placed in the Public Land Registry so the land could be regularized and eventually could be sold or leased. This same year, Mexico permitted foreigners to purchase and own real estate or businesses WITHIN the restricted zone. This ownership is through a land trust or ¨fideicomiso.¨ A real estate bank trust is established when the Mexican Government issues a permit to a Mexican bank, allowing the bank to act as the purchaser for the property. These ¨beneficiary rights¨ are similar to a living will or estate trust in the US with the same rights to sell, will, lease, encumber and enjoy the property. • NAFTA AGREEMENT FOR NORTH AMERICA
Foreigners were allowed to own their own businesses in Mexico. A corporation was able to own property in a restricted zone without a fideicomiso. • 2008 MOTION TO EXTINGUISH FIDEICOMISO TRUSTS Sonora Federal Senator Carlos Zatarain of the PRI party introduced a motion to rescind existing bank trusts and abolish the Restricted Zone, thereby allowing fee simple ownership throughout Mexico. This motion will take some time to be heard and voted upon by the Mexican Congress. Much like the US constitution which requires a very high degree of consensus to amend, 75 % is necessary to pass the Senate and House of Representatives at the federal level. The motion must also pass by the same 75% vote in all 32 state congresses. • 2009 There is a rumor that the government is discussing calling back the ejido to privatize it. The land can be given back to the original ejidos to keep as private land or to sell. Anyone having information on this, please write me. Email to a friendHarriet Murray More about Mazatlan:
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Land changed hands during these tumultuous years: the US acquired one third of Mexico’s territory for $15 million USD after the treaty of Guadalupe-Hidalgo. The Rio Grande River became the boundary between the two countries. 
• 1917 MEXCAN CONSTITUION 
The N.A.F.T.A. Treaty between Canada, Mexico and the United States provides security from any of these governments’ arbitrarily seizing land from its rightful owner. The property owner has absolute and irrevocable control of ownership and its benefits such as development, use, construction, leasing, selling and willing of the property.
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