MEXICO Law and Practice Contributed by: Roberto Cannizzo, Carlo Cannizzo, Stefano Amato and Mauricio Moreno-Rey, Cannizzo
Code, the Income Tax Law and local real estate acquisition provisions), environmental aspects, urban development and construction limitations, and limitations imposed on the use of the real estate: eg, in terms of leasing, especially for residential purposes, limitations that may result depending on where the real estate is located (eg, federal zone residential restrictions). It is important for the investor to understand that there are specific laws which apply to the “Ejido Properties”. 2.7 Soil Pollution or Environmental Contamination Although it is common practice to include provi - sions in agreements that hold the seller respon - sible for environmental liability, the buyer may also bear responsibility before the environmental authority for the environmental condition of the land and its remediation. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law In terms of the provisions of the Constitution, the municipalities in Mexico are the entities author - ised to regulate zoning and planning matters following guidelines set forth by the Federal Congress and the states. Thus, to determine the land use of specific real estate, it is necessary to analyse the applicable laws (zoning and plan - ning). At the state level, the applicable provisions might be found in the State Partial Development Plans; and, at the municipal level, in the Munici - pal Development Plans, the Urban Development Plans that determine the main land use of the urban centres, and, sometimes, the Detailed Plans. To confirm the land use of a given real property, the purchaser must review the land use zoning certificate and licence issued by the competent authority.
In environmental matters, at the federal level there are General Ecological Plans that regulate the use of land to protect the environment and promote sustainable development, while State Ecological Partial Plans and sector- specific programmes address agricultural, territorial and urban development issues, as well as matters related to protected natural areas. Additionally, ecological reserves are established to protect specific flora and fauna, imposing limitations on human activities within these areas. Although it is not common to enter into specific development agreements with the relevant pub - lic authorities to facilitate a project, it can occur if the authority is interested in a specific project due to its size or impact on urban development. In practice, this has been seen in the case of large-scale developments that may include mari - nas, golf courses, residential, hospitality, com - mercial, hospitals, etc. 2.9 Condemnation, Expropriation or Compulsory Purchase The Mexican government is authorised at the federal and local levels to expropriate the prop - erty of individuals for public utility purposes. Causes of public utility include: • establishment, operation or conservation of a public service; • opening, expansion, construction or align - ment of streets, roads, bridges, paths and tunnels to facilitate urban and suburban traf - fic; • beautification, expansion and sanitation of towns and ports; • construction of hospitals, schools, parks, gardens, sports fields or airfields; and Expropriation Law Possible reasons
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