Dear clients & friends,
The Civil Code of Mexico City (“CCCDMX”) regulates, among other legal acts, the lease contract for real estate intended for residential use. Over the years, this code has undergone various reforms to balance the relationship between landlords and tenants.
On October 30th, a draft decree was published in the parliamentary gazette of Mexico City, aiming to reform Article 2448-F of the CCCDMX, which regulates the minimum provisions that must be included in the lease contract.
The draft decree proposes the following restrictions:
- I would prohibit requiring a guarantee from an owner of a movable or immovable property of equal or greater value than the leased property.
- It would disallow the stipulation of advance payments for one or several months of rent.
- It would forbid requiring the signature of blank credit instruments (i.e., promissory notes).
The proposed modifications could significantly impact the security and control that landlords have over their properties. By eliminating the possibility of requiring guarantees, such as sureties and advance payments, landlords may face a heightened risk of tenant default. Although the prohibition of signing blank credit instruments may prevent abuses, it could also restrict landlords' legal options in cases of default.
Given the potential implications of these proposed changes on the leasing market, it is crucial for landlords to stay informed and prepared. At KG, we can analyze your specific situation and explore strategies to protect your rights and properties.
Should you have any questions or require advice on this matter, our team of experts is available at the following email:
Paul Kavanagh: paul@k-g.com.mx
Luis Kanchi: Lkanchi@k-g.com.mx
Miguel Alonso: malonso@k-g.com.mx