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Leasing is a popular way to acquire real estate or other types of property in Mexico. Through a lease contract, the tenant (lessee) obtains the right to use a property owned by the landlord (lessor) for a specified period in exchange for a payment. Lease contracts in Mexico are subject to specific regulations that govern the terms and conditions, rights, and obligations of the parties involved. In this article, we will provide an overview of the main provisions of Mexican lease contracts and their legal framework.

Types of lease contracts:

The Mexican Civil Code recognizes two types of lease contracts: residential and commercial. Residential lease contracts refer to properties used for dwelling purposes, while commercial lease contracts apply to properties used for business, commercial, or industrial activities.

Terms and conditions:

Mexican lease contracts must comply with certain mandatory provisions established by the Civil Code. Some of the essential terms and conditions that should be included in a lease contract in Mexico are:

– Identification of the parties involved, including full name and address

– Description of the property, including location, size, and condition

– Term of the lease agreement, specifying the start and end dates

– Rent payment, frequency, and method of payment

– Expenses that will be the responsibility of each party, such as taxes, maintenance, repairs, utilities, and insurance

– Security deposit to be paid by the tenant to guarantee the fulfillment of its obligations

– Provisions regarding improvements, modifications, or alterations to the property

– Restrictions on the use of the property

– Termination clauses, such as early termination, default, and breach of contract

– Renewal or extension options, if applicable.

Rights and obligations of the parties:

Mexican law prescribes specific duties and responsibilities for both the lessor and lessee concerning lease contracts. Some of the most important rights and obligations of the parties are:

– The landlord’s obligation to deliver the property in good condition and repair, and to maintain it accordingly during the lease term.

– The tenant’s duty to use the property according to the agreed purpose and not to assign, sublet, or use it for illegal activities.

– The tenant’s obligation to pay the rent and other charges stipulated in the contract.

– The landlord’s right to inspect the property and check its condition periodically.

– The landlord’s obligation to return the security deposit at the end of the lease term, deducting any outstanding amounts that the tenant owes.

This is why hiring the services of a Mexican law firm can be incredibly beneficial for foreigners moving to Mexico.

As a Law firm, we work with a variety of individuals, professionals, and small to medium enterprises, on a range of commercial transactions including sales of business, leasing, and shareholders agreements, contracts form the foundation of any business, so it’s important that the contract documentation is right the first time and is tailored to your business needs, we often see business relying on verbal agreements which are not recorded in writing or outdated contractual documentation, while this seems to be more cost-effective, disputes, legal action, and a poorly drafted contract, will cost you more in the long run.

Engaging a Lawyer to draft or review a contract saves you time and money in the long run, and offers you peace of mind that you can focus on running your business.

Here at Legal Representation Mexico, we draft clear and straightforward contracts which detail the rights and obligations of the parties and minimize the risk of disputes and legal actions.

We focus on protecting your business now and in the future.

When you come in for your first consultation, we will discuss your contract or legal issue with you and provide some initial advice, if you want to engage us from there, we will provide you with a cost agreement that outlines what we would do for you and the likely cost of our services.

If you need assistance with drafting or reviewing a contract or require advice, then please contact us.