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Expropriation: public purpose causes, the declaration procedure, compensation at commercial value paid within 45 business days, reversion and treaty protection

Last verified: 2026-10-26 · Status: Stable

The federal government may expropriate, temporarily occupy or limit property for listed public purposes after a published declaration, a 15 business day period to object and a decree within 30 business days of the final resolution. Compensation equals commercial value, never below the cadastral value, set by the national appraisal agency, banks or authorized appraisers, and must be paid in pesos within 45 business days of the decree; only the amount can be litigated in the special judicial procedure. If the property is not used for the stated purpose within five years, the owner may ask for reversion within two years; foreign investors may also have treaty protection.

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Key facts

Period to object to a declaration of public purpose	15 business daysLey de Expropiación art. 2o., as of 2026-10-26 · in force
Deadline to pay compensation after publication of the decree	45 business daysLey de Expropiación art. 20, as of 2026-10-26 · in force
Years without use for the declared purpose after which reversion can be requested	5 yearsLey de Expropiación art. 9o., as of 2026-10-26 · in force

The rule

1. Public purpose causes. Causes include public services; streets, roads, bridges and tunnels; public buildings, hospitals, schools and parks; public infrastructure and services under concessions or contracts; protection of heritage; supplies in emergencies and epidemics; national defense; conservation and use of natural resources; equitable distribution of monopolized wealth; and creation or conservation of enterprises for collective benefit, among others.
Cost to do it: No cost to the owner.Ley de Expropiación, DOF 25 November 1936, last reform DOF 27 January 2012, art. 1o. (section III Bis added DOF 5 June 2009); Constitution art. 27, Art. 1o., 1936-11-25 official text · verified 2026-10-26

2. Procedure. The competent ministry issues a declaration of public purpose based on technical opinions, publishes it in the DOF and notifies owners personally (or by a second DOF publication within 5 business days if unknown). Owners have 15 business days to object and offer evidence; a hearing follows within 8 business days, then 3 business days for written arguments, and the authority confirms, modifies or revokes within 10 business days. That resolution can only be challenged by amparo. The President must issue the expropriation decree within 30 business days or the declaration lapses. Occupation is immediate and not suspended by challenges, but outside emergencies the authority may occupy once the appraised compensation has been paid. Measures do not need a public deed.
Cost to do it: Legal costs of objections and amparo.Ley de Expropiación arts. 2o. (reformed DOF 5 June 2009 and 16 January 2012), 4o., 7o., 8 Bis and 20, Arts. 2o., 4o., 7o., 8 Bis and 20, 2012-01-16 official text · verified 2026-10-26

3. Compensation. Compensation equals commercial value and, for real estate, may not be lower than the value in cadastral or tax offices. It is set by the national appraisal agency, banks, public brokers or appraisers with postgraduate valuation degrees authorized under the regulation. Within 10 business days after notice of the decree, owners may go to court only to dispute the amount and claim damages; the judge appoints experts, who report within 60 days, and resolves within 10 days with no appeal. Compensation must be paid in pesos within 45 business days after the decree is published, unless payment in kind is agreed; it is paid by whoever receives the property.
Cost to do it: Owners pay their own expert's fees (art. 14).
Example: A plot with commercial value of MXN 5,000,000 and cadastral value of MXN 3,000,000 must be compensated with at least MXN 5,000,000 if that is the appraised commercial value, never less than MXN 3,000,000. / About USD 267,898 and USD 160,739.Ley de Expropiación arts. 5o., 10, 11, 15, 16, 17, 19 and 20, Arts. 5o., 10 to 20, 2012-01-16 official text · verified 2026-10-26

4. Reversion. If the property is not used in whole or part for the declared purpose within five years, the owner may request reversion, or the end of the occupation or limitation, or damages; the authority resolves within 45 business days, and the owner returns only the compensation received. The right must be exercised within two years from when it becomes enforceable.
Cost to do it: Return of the compensation received.Ley de Expropiación art. 9o., reformed DOF 22 December 1993, Art. 9o., 1993-12-22 official text · verified 2026-10-26

Worked example

The federal government declares a public purpose to build a highway over part of a logistics park. The owner files objections within 15 business days; the decree follows; the government occupies the land and must pay commercial value within 45 business days; the owner disputes the amount in court within 10 business days of notice. If the road is not built on the land within five years, the owner may seek reversion (Ley de Expropiación arts. 2o., 5o., 9o. and 20).

Step by step

1. Watch the DOF for declarations affecting your property and diarize the 15 business day objection period.
2. Commission an independent commercial appraisal early.
3. Challenge the final resolution by amparo if the purpose is contested; dispute the amount in the special court procedure within 10 business days of notice of the decree.
4. Track payment within 45 business days and the five year use test for reversion.
5. Foreign investors: check investment treaty protection with counsel.

Common traps

Missing the 15 business day objection period (art. 2o.).
Expecting the court to stop occupation: challenges do not suspend it (art. 7o.).
Disputing more than the amount in the special procedure: it covers only compensation and damages (art. 5o.).
Forgetting the two year limit to claim reversion (art. 9o.).

Sources

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