The Paper Chase | Real Estate & Business Consulting

May/10

5

CLARIFY A “COMPLICATED” MATTER WITH EJIDO LAND

DEAR PAPER CHASE CLIENTS:

I THOUGHT IT WOULD BE GOOD IDEA TO CLARIFY A “COMPLICATED” MATTER WITH EJIDO LAND.

FACTS:

EJIDO PROPERTY IS OWNED BY A COMMUNITY OF EJIDATARIOS (MORE THAN 100 PERSONS IN MOST CASES); IN OTHER WORDS EVERY EJIDO MEMBER OWNS AN INDISTINCT PIECE OF THE TOTAL LAND OWNED BY THE EJIDO.

EJIDO PROPERTY IS REGULATED BY AGRARIAN LAW, IT MUST FOLLOW A PROCESS OF “PRIVATIZACION” IN ORDER TO LEGALY BE SOLD TO ANY PERSON (NATIONAL OR FOREIGNER).

ONCE LAND BECOMES PRIVATE THE EJIDO MEMBER, NOT THE EJIDO COMMUNITY RECEIVES TITLE TO PROPERTY FROM FEDERAL GOVERNMENT. POPERTY IS NOW REGULATED BY CIVIL LAWS, THEN IT CAN BE SOLD BY THE EJIDO MEMBER (PROPIETARIO).

ONCE TITLE IS GRANTED, LAND HAS BEEN CONVERTED TO PRIVATE PROPERTY. AGRARIAN RULES DO NOT APPLY TO ANY SUBSECUENT ACT RELATED TO IT, THEREFORE DOCUMENTS SUCH AS “CARTAS DE POSESION” (LETTERS OF POSSESSION) DO NOT APPLY AND LEGALY HOLD MUCH LESS VALUE THAN “TITULO DE PROPIEDAD” OR TITLE TO PROPERTY GRANTED BY THE STATE OF MEXICO.

THESE ARE SOME OF THE THINGS THAT COULD HAPPEN BEFORE AND AFTER THE COMPLETION OF PRIVATIZATION PROPERTY PROCESS:

  1. TWO OR MORE PEOPLE BUYING OR SELLING WITH THE SAME “CARTA DE POSESION”.
  2. DECEASED OF PROPIETARIO (EJIDATARIO WHO GOT TITLE TO PROPERTY). IF OWNERSHIP WAS NOT TRANSFERRED TO EVERY ONE OF THE EJIDATARIOS LAND IS NOW INHERITED TO HIS HEIRESS. HOPEFULLY HE LEFT A WILL, IF NOT A WHOLE “JUICIO SUCESORIO” WHICH MAY TAKE YEARS, HAS TO BE COMPLETED BEFORE OWNERSHIP CAN BE TRANSFERRED TO THE PERSON WHO HOLDS “CARTA DE POSESION” TO THE PERSONS RECOGNIZED BY THE HEIRESS.
  3. PROPERTY GETS SEIZED (TIED UP IN COURT) DUE TO OTHER LIABILITIES, LAWSUITS, ETC THAT THE EJIDATARIO MAY HAVE AGAINST HIM, MAKING HIM UNABLE TO TRANSFERR OWNERSHIP OF LAND.
  4. TWO OR MORE PEOPLE END UP WITH THE SAME “CARTA DE POSESION” FOR THE SAME PROPERTY.
  5. PEOPLE (EJIDATARIOS AND NON EJIDATARIOS) SELLING PROPERTY WITH “CARTAS DE POSESION” EVEN AFTER TITLE HAS BEEN ISSUED IN ORDER TO AVOID PAYING TAXES OR TO SAVE MONEY ON PAPERWORK ONLY TRANSFERRING THIS COST (AND POTENTIAL PROBLEMS) TO THE BUYER.

SELLING OR BUYING WITH LETTERS OF POSSESSION :-(

THERE HAS BEEN  CASES IN WHICH THE EJIDO DECIDES TO PRIVATIZE LAND, THE ASSEMBLY OF THE EJIDO THEN SUBDIVIDES THE LAND  AND ASSIGNS RIGHTS OF POSSESSION TO  EVERY ONE OF THE EJIDO  ISSUING A “CARTA DE POSSESSION” BUT IN ORDER TO EXPEDITE THE PRIVATIZATION PROCESS, RATHER THAN SUBMITTING TITLE APPLICATION FOR EVERY ONE OF THE LOTS FOR EVERY ONE OF THE EJIDO MEMBERS THE WHOLE EJIDO AGREES TO APPLYING FOR ONE TITLE FOR ONLY  ONE OF THE EJIDATARIOS WHO COMPROMISES WITH THE EJIDATARIOS THAT ONCE RECEIVING TITLE HE WILL TRANSFER  PROPERY IN THE NAME OF EVERY EJIDATARIO WHO HOLDS THE LETTER OF POSSESSION (CARTA DE POSESION) RECEIVING A SIMBOLIC PAYMENT TO COVER HIS EXPENSES.

FOUR OR FIVE OR MAY BE MORE SALES HAVE BEEN COMPLETED USING THIS “CARTA DE POSESSION”, -MANY TRANSFERS OF OWNERSHIP NOT PAYING THE CORRESPONDING TAXES OF A SALE, BECAUSE LEGALY LAND CAN NOT BE SOLD!- WHILE TITLE APPLICATION IS BEING PROCESSED AND EVEN AFTER TITLE HAD BEEN ISSUED FOR OVER THREE YEARS.

IN ONE OF THIS CASES WE WERE WIRED BY THE PROPIETARIO (EJIDATARIO WHO HOLDS TITLE) TO GIVE OUR PROFESSIONAL ASSISTANCE AS WELL AS TO PROCESS ALL NECESSARY PAPERWORK IN ORDER TO FINISH TRANSFERRING LAND TO THE PERSONS WHO HELD A “CARTA DE POSESION” BECAUSE HE REALLY HAD NO IDEA OF THE DOCUMENTS HE HAD BEEN SIGNING FOR PEOPLE.

GOALS: WE WERE HIRED TO GIVE PROFESSIONAL ASSISTANCE AND FINISH TRANSFERRING OWNERSHIP TO PROPERTY TO EVERY HOLDER OF “CARTA DE POSESION”.

PLAN, STRATEGY: WE WOULD NOT CHARGE HIM FOR OUR SERVICES ONLY IF WE WERE ABLE TO PROCESS ALL THE TRANSFERRINGS THAT INLVOLVED SETTING A FIDEICOMISO, IN A WIN-WIN SITUATION FOR ALL THE PARTIES INVOLVED BY:

FIDEICOMISARIO – IF TITLE HOLDER WAS A FOREIGN

A)    BECAUSE HE WOULD GET PROPER LEGAL BINDING DOCUMENTATION OF PROPERTY.

B)    HAVING A GROUP OF PROFESSIONALS SUPPORTING THE TRANSACTION, COORDINATION COVERING ALL ASPECTS SUCH AS TRANSLATIONS BY A CERTIFIED TRANSLATOR, CONTRACTS AND FISCAL ASPECTS REVIWED BY LAWER AND BUSINESS PROFESSIONALS.

C)    HAVING THE EXPERIENCE AND EXPERTISE OF THE PAPER CHASE TEAM COMPLETING THE TRANSACTION.

PROPIETARIO (EJIDATARIO WHO HOLDS TITLE).

A)     PROPERTY TAXES ARE NO LONGER HIS RESPONSIBILITY.

B)     TAKES OFF ALL THE PRESSURE THAT COMES WITH “OWNING” OTHER PEOPLES PROPERTY.

C)     HIS/HER PEACE OF MIND BECAUSE IN THE EVENT OF DEATH THE FAMILY WOULD NOT BE INHERITING THE “PROBLEM” OF HAVING TO SIGN DOCUMENTS FOR EVERYONE OF THE MORE THAN 100 LOTS.

THE PAPER CHASE

A)    BY HAVING WORK. ONLY CHARGING CLIENTS FOR WHAT WE DO. DOING WHAT WE DO BEST, PREVENTING PEOPLE FROM HAVING PROBLEMS.

B)    HELPING SOLVE PROBLEM OF UNCERTAINTY OF OWNERSHIP.

UNFORTUNATELLY A REAL ESTATE COMPANY TALKED HIM INTO SIGNING TRANSFER OF OWNERSHIP AND OTHER PAPERS FOR A FEW OF ITS TRANSACTIONS. WITHOUT US CHECKING ON THE LEGALITIES OF THE SALES EVEN THOUGH THEY WERE AWARE OF OUR ARRANGEMENT WITH THE SENOR, SO WE DECIDED TO STEP OUT OF IT NOT WANTING TO DEAL WITH BAD REALTORS AND THEIR WAYS.

CONCLUSION:

IF YOU ARE GOING TO SELL OR BUY PROPERTY OR HAVE PROPERTY IN THIS KIND OF SITUATION HIRE A PROFESSIONAL TO ASSIST YOU OR THERE IS A CHANCE YOU PAY FOR IT LATER.

REMEMBER, IF YOU DON’T TRANSFER OWNERSHIP AND JUST HAVE A CARTA DE POSESION TO HOLD YOUR PROPERTY, LEGALY IT’S SOMEBODY ELSES PROPERTY NOT YOURS.

Contact us if you need support.

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