MEXICO Law and Practice Contributed by: Roberto Cannizzo, Carlo Cannizzo, Stefano Amato and Mauricio Moreno-Rey, Cannizzo
Procedure The expropriation process begins with a public utility declaration, published in the Federal Official Gazette and, if applicable, a local newspaper. Property owners are notified and may present evidence and arguments before a judge issues a ruling. If approved, the Federal Executive decrees the expropriation and publishes it again. The decree includes compensation, which must match the property’s commercial value and cannot be lower than its cadastral value. Owners can challenge the decision in court. Once decreed, authorities may occupy the property. The Expropriation Law allows for temporary occupation, total/partial expropriation, or limitations on ownership rights. National Law on Ownership Extinction The National Law on Ownership Extinction governs the process of extinguishing property ownership in favour of the state through the federal or state govern - ment, as applicable. According to the law, property can be subject to ownership extinction if it is the prod - uct, instrument or material object of certain specified crimes. These crimes include: • offences under the Federal Law against Organised Crime; • kidnapping; • crimes involving hydrocarbons, oil and petrochemi - cals; • crimes against health; • human trafficking; • corruption; • concealment; • crimes committed by public servants; • offences outlined in the Federal Criminal Code relating to transactions involving resources of illicit origin. It is very important that the lease agreement includes specific clauses detailing the use and activities that may be carried out in the leased property. • vehicle theft; • extortion; and
Environmental and territorial planning instruments are also binding and must be analysed alongside urban regulations. Ecological Land Use Planning Programmes ( Programas de Ordenamiento Ecológico del Territorio – POET) set environmental zoning at the federal, state or regional level, while Local Ecologi - cal Land Use Programmes ( Programas de Ordenami- ento Ecológico Local – POEL) may impose additional municipal restrictions that can limit development beyond traditional urban zoning. Environmental regulations include General Ecological Plans at the federal level, which promote sustainable land use, while State Ecological Partial Plans and sector-specific programmes address agricultural, ter - ritorial and urban development. In protected natural areas, there are restrictions on human activities to safeguard biodiversity. While development agreements with authorities are uncommon, they may occur for large-scale projects with a significant urban impact. These agreements have been seen in developments such as marinas and golf courses, as well as in residential, hospitality and commercial projects, where government interest aligns with urban planning goals. 2.9 Condemnation, Expropriation or Compulsory Purchase The Mexican government is authorised at the federal and local levels to expropriate the property of individu - als for public utility purposes, including: • the establishment, operation or conservation of a public service; • the opening, expansion, construction or alignment of streets, roads, bridges, paths and tunnels to facilitate urban and suburban traffic; • the beautification, expansion and sanitation of towns and ports; • the construction of hospitals, schools, parks, gar - dens, sports fields or airfields; and • the construction of public infrastructure and ser - vices. Expropriation Law Possible reasons
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