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Reforms to the Civil Code Regarding Residential Lease in Mexico City
MEXICO CITY, MEXICO, September 4th, 2024 – On August 28, 2024, the Civil Code of Mexico City was amended as published in the Official Gazette, introducing significant new provisions for residential leases. The main changes are detailed below:
1. Limitation on rent increases. Effective as of the amendment date, the annual rent increase for a residential lease agreement may not exceed the annual inflation reported by the Bank of Mexico. It is important to note that, although this requirement is already in effect, there is no sanction established for parties who fail to comply with this provision.
2. Registration of lease agreements. The reform also establishes the creation of a digital registry for lease agreements, which will be managed by the Government of Mexico City. Landlords must register their agreements within 30 days of their execution. The Code does not establish any penalties for failing to register a contract.
The information entered into the registry will not be public and may not be disclosed. Consequences are foreseen for those who misuse the registry or fail to adequately protect personal data. Such actions will be sanctioned in accordance with applicable criminal and administrative laws.
The SMPS Legal team is available for any questions regarding this notice, as well as for any possible strategies your company may wish to develop or consult.