MEXICO Law and Practice Contributed by: Roberto Cannizzo, Carlo Cannizzo, Stefano Amato and Mauricio Moreno-Rey, Cannizzo
trial sector saw a spin-off from Fibra Uno, the larg - est Mexican REIT and public offering, namely Fibra Next, which will develop industrial parks. However, ongoing trade tensions and potential tariff measures by the United States, together with broader global trade dynamics, may affect certain industries and the real estate sector. Despite these challenges, Mexico’s industrial real estate market continues to expand. Impact of Disruptive Technologies New technologies are transforming Mexico’s real estate sector, with AI, blockchain, decentralised finance (DeFi) and proptech enabling new investment opportunities. These innovations have expanded acquisition portfolios, facilitated fractional property ownership and streamlined mortgage debt transac - tions. Blockchain enhances transparency, reduc - ing transaction risks, costs and processing time by minimising expenses such as no-lien searches, notary fees and registrations. Smart contracts and fintech have modernised pay - ment solutions, reducing reliance on cash and paper cheques while ensuring secure rent and property transactions. Lenders benefit from data-driven risk assessments, while contech improves financial man - agement and efficiency in construction. Moreover, the Law to Regulate Financial Technol - ogy Institutions provides a legal framework for new technologies, and the Mexican National Banking and Securities Commission grants authorisations to oper - ate, so an increase in technology companies entering the market, including the real estate sector, is antici - pated. However, due to Mexico’s strict civil law sys - tem requiring notary involvement for property trans - fers, major industry shifts are unlikely within the next year despite ongoing technological advancements. 1.3 Proposals for Reform Mexico City has introduced significant reforms to the Mexico City Civil Code ( Código Civil para el Distrito Federal – CCDF) and the Housing Law, where rent increases cannot exceed inflation, and landlords must register lease agreements in a new digital system with - in 30 days. Existing leases must be registered within 90 days of the system’s launch. Non-compliance can result in:
• fines of up to MXN1.2 million; • work suspensions; and • registration cancellations for up to six years. The government is also mandated to promote afford - able rental housing for low-income residents per the Housing Law. 2. Sale and Purchase 2.1 Categories of Property Rights The Mexican Civil Codes provide for several catego - ries of property rights, namely: • usufruct (the real and temporary right to enjoy the property of others, which includes the right to receive all the benefits, whether natural, industrial or civil, produced by the property); and • other minor rights such as use or certain ease - ments. In infrastructure projects, rights of way or other types of easements are used for the construction of roads, gas and oil pipelines. Another type of property is Ejido property, which accounts for over 50% of the land in Mexico and refers to a landholding in Mexico that is owned collectively by a community, and is typically used for agriculture or other similar purposes. It is subject to a special regime, regulated by Article 27 of the Constitution and the Agrarian Law. 2.2 Laws Applicable to Transfer of Title The law applicable to transfer of title, if the transfer is considered a commercial act by the Commercial Code, is the Civil Code of the relevant state where the real estate is located. If at least one of the parties is a merchant (including real estate for industrial purposes, offices, retail and hotels), the applicable law would be the Commercial Code and the Civil Code of the relevant state where the real estate is located. In combinations involving corporations (ie, mergers, the purchase of shares) or trusts, the Commercial • full ownership; • co-ownership;
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