Private property, both non-real estate and real estate, is recognized and protected in El Salvador. Mortgages and real property liens exist. Companies that plan to buy land or other real estate are advised to hire competent local legal counsel to guide them on the property’s title prior to purchase.
Per the Constitution, no single natural or legal person–whether national or foreign–can own more than 245 hectares (605 acres) of land. Reciprocity applies to the ownership of rural land, i.e., El Salvador does not restrict the ownership of rural land by foreigners, unless Salvadoran citizens are restricted in the corresponding states. The restriction on rural land does not apply if used for industrial purposes.
Real property can be transferred without government authorization. For title transfer to be valid regarding third parties, however, it needs to be properly registered. Laws regarding rental property tend to favor the interests of tenants. For instance, tenants may remain on property after their lease expires, provided they continue to pay rent. Likewise, the law limits the permissible rent and makes eviction processes extremely difficult.
Squatters occupying private property in “good faith” can eventually acquire title. If the owner of the property is unknown, squatters can acquire title after 20 years of good faith possession through a judicial procedure; if the owner is known, squatters can acquire title after 30 years.
Squatters may never acquire title to public land, although municipalities often grant the right of use to the squatter.
Zoning is regulated by municipal rules. Municipalities have broad power regarding the use of property within their jurisdiction. Zoning maps, if they exist, are generally not available to the public.
The perceived ineffectiveness of the judicial system discourages investments in real estate and makes execution of real estate guarantees difficult. Securitization of real estate guarantees or titles is legally permissible but does not occur frequently in practice.
El Salvador ranks 79th of 190 economies on the World Bank’s Doing Business 2020 report in the Ease of Registering Property category. According to the collected data, registering a property takes an average of six steps over a period of 31 days, and costs 3.8 percent of the reported value of the property.
Salvadorans are fighting for land rights, with over 350,000 families unable to claim legal ownership of their properties despite paying for them. Heidi Zelaya, a community leader, is part of Communities of Faith Organizing in Action (COFOA), a grassroots organization advocating for land rights. Their campaign, known as “RENACER,” aims to pressure land developers to provide titles to lot owners and push for government reforms to hold developers accountable.
Many families, like Zelaya’s, have waited for decades to secure legal ownership of their land, facing challenges in accessing basic services like water and electricity. COFOA is working to address this issue through community organizing and direct action, pressuring officials at the local and national levels.
The struggle for land rights is deeply connected to the fight for access to clean, affordable water, as the elite continue to benefit from publicly-funded water resources. COFOA has been at the forefront of advocating for water rights as well.
COFOA’s approach involves building relationships, community-led research, dialogue, and demonstrations of people power to demand accountability from public officials. Over the years, they have successfully secured millions of dollars in funding and reforms, benefiting ordinary citizens.
The organization’s current focus is on pressuring legislators to pass a law protecting the rights of lot purchasers and holding developers accountable. Their efforts have led to some families receiving their titles, but the work continues until everyone is granted legal ownership. COFOA plans to keep pushing for change and is prepared to seek international support if needed.