MEXICO Law and Practice Contributed by: Roberto Cannizzo, Carlo Cannizzo, Stefano Amato and Mauricio Moreno-Rey, Cannizzo
6.10 Payment of Utilities and Telecommunications
of rules. The federal and state Civil Codes contain a specific set of rules for residential and rural properties. • Properties intended for residential purposes – specific rules are provided in the Civil Codes to address, among other things: (a) hygiene and health conditions, and minimum term of lease; (b) the preferential right of the tenant to acquire the leased property or enter into a new lease; and (c) currency for payment of the rent. Rules applicable to residential leases are usually con - sidered to be of public order and social interest – and are, therefore, not waivable. • Rural property – specific rules are provided in the Civil Codes to address, among other things: (a) the terms for payment of rent; (b) the rights of the tenant in the event of lack of productivity of the leased property; and (c) the minimum term of the lease. In addition to what was discussed in 6.3 Regulation of Rents or Lease Terms regarding the “unforeseeability theory”, it should be noted that judicial criteria have established that such a theory does not apply to com - mercial acts; therefore, its application to commercial leases could be challenged. 6.16 Effect of the Tenant’s Insolvency The Law on Commercial Insolvency ( Ley de Concur- sos Mercantiles ) provides that a tenant’s commercial insolvency does not terminate a lease agreement. However, the conciliator appointed for the insolvency procedure may terminate the agreement, in which case the compensation agreed in the lease must be paid to the landlord – or, failing that, an indemnity equal to three months’ rent – for early termination. 6.17 Right to Occupy After Termination or Expiry of a Lease Generally, a tenant is not entitled to continue occupy - ing the leased property after the termination of the lease agreement, and the landlord is entitled to enforce eviction. However, if the tenant continues to occupy the property without any objection from the landlord,
Utilities and telecommunications that serve a property occupied by several tenants are usually paid on a pro rata basis and reflected in the maintenance. 6.11 Payment of Property Taxes It is customary for the owner/landlord to pay for the real property tax of the leased property. However, there is a tendency, mainly in industrial and commer - cial facilities, to use triple net lease conditions where the landlord pays for the property tax, property insur - Neither federal nor state Civil Codes mandate insur- ance for leased properties, but tenants are generally expected to cover civil liability and fire damage. Land - lords typically insure the property, though commercial and industrial tenants may be required to cover risks like earthquakes and floods. Common area insurance is usually included in maintenance fees. Business interruption insurance is uncommon unless financing is involved, as it mainly covers closures due to Acts of God or force majeure. ance and maintenance. 6.12 Insurance Issues 6.13 Restrictions on the Use of Real Estate Pursuant to the federal and state Civil Codes, the ten- ant must use the leased property solely for its agreed- upon purpose or pursuant to its intended nature and destination. If a tenant violates this provision, the land - lord has the right to terminate the lease agreement. 6.14 Tenant’s Ability to Alter and Improve Real Estate The federal and state Civil Codes stipulate that a ten - ant cannot alter the form of the leased property with - out the landlord’s express consent. If such provision is breached, the tenant is responsible for restoring the leased property to its original state and paying the damages caused to the landlord. Usually, improve - ments are paid by the tenant; in exceptional cases, the landlord must pay them if they are useful, urgent
or authorised improvements. 6.15 Specific Regulations
Premises used for commercial, industrial, office or retail purposes are usually subject to the same set
448 CHAMBERS.COM
Powered by FlippingBook