The trailer park was converted into a gated community of
75 high-end residences in a prime location.
All of the community's urban infrastructure was built by the individual residents of Villa Serena.

The fact that the land was leased did not prevent anyone from receiving permits to build homes, close real estate transactions or access public services such as electricity, water and sewage.

Promotora Los Cabos closed and the Ejido de Cabo group recovered all rights to the land. Each owner went from paying rent to Promotora Los Cabos to paying it to the Ejido, without stopping paying taxes to the local municipality.
The Ejido de Cabo group issued a letter saying it would honor all aspects of the original lease agreement.

El grupo Ejido de Cabo inmediatamente comenzó a exigir a los nuevos arrendatarios que firmaran una adenda renunciando a todos los derechos sobre sus propias viviendas al final del contrato de arrendamiento actual de 30 años (que finalizó el 31 de diciembre de 2023), sin compensación. Luego se les podría volver a arrendar el terreno y su antigua casa

Villa Serena began negotiating the new lease contract
y llegó a un acuerdo verbal con Ejido de Cabo.

The Ejido submitted a formal 30-year purchase option offer, but had introduced significant changes to the lease that went far beyond the verbal agreement that had been reached.
These changes included: A portion of the sales of each home sold would go to the Ejido, a percentage that would go from 10% at the beginning to 90% towards the end of the new lease period.

A 2,000% increase in rental prices, which far exceeds the price increase from 1994 to 2023 in surrounding communities. The Ejido did not and has not shared a copy of the proposed new lease, refusing to share one unless residents sign it.

55 residents of Villa Serena came together to hire legal counsel and seek compensation for the market value of each property and all urban facilities and infrastructure built by Villa Serena, which would prevent the Ejido from taking over their properties without due compensation .

Residents of Villa Serena sent letters of concern to the US and Canadian consulates seeking support during this process, as the majority of the owners are US or Canadian citizens. They received no help and were simply advised to seek local legal advice.

The Ejido threatened to close access to Villa Serena, which has a single entrance guarded by a sentry box managed by the Ejido of Cabos. This would completely prevent all residents from accessing their homes.

Local authorities have already expressed a sympathetic stance on this issue, as denying access or evicting people without a court order is not legal under Mexican law. The local agrarian court refused to hear the request for precautionary measures from the residents of Villa Serena. The residents of Villa Serena appealed this lack of resolution.

The current lease ended on December 31, 2023.
Unless residents sign a lease under new terms before that date, there will be no lease
in effect as of January 1, 2024.

The Ejido moved forward in removing the neighbors from their homes, very intimidating since there were four or five vans with 10 or 12 people from the ejido, judges, musclemen and translators. The residents are very upset. The Ejido tries to take away their homes without compensation… steal their homes.