MEXICO Law and Practice Contributed by: Roberto Cannizzo, Carlo Cannizzo, Stefano Amato and Mauricio Moreno-Rey, Cannizzo
6.12 Restrictions on the Use of Real Estate Pursuant to the federal and state civil codes, the tenant 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 landlord has the right to terminate the lease agreement. 6.13 Tenant’s Ability to Alter and Improve Real Estate The federal and state civil codes stipulate that a tenant cannot alter the form of the leased prop - erty without the landlord’s express consent. If such provision is breached, the tenant is respon - sible for restoring the leased property to its origi - nal state and paying the damages caused to the landlord. Usually, improvements are paid by the tenant; in exceptional cases, the landlord must pay them if they are useful, urgent or authorised improvements. 6.14 Specific Regulations Premises used for commercial, industrial, office or retail purposes are usually subject to the same set 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 mini - mum 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 usu - ally considered to be of public order and social interest, and, therefore, they are not waivable.
are allocated among the co-owners/users of the common areas. Leases of premises located in shopping centres may also require payment of a certain amount or percentage of the rent as advertising/marketing fees. Such fees and quo - tas are usually payable on a monthly basis. 6.10 Payment of Utilities and Telecommunications Utilities and telecommunications that serve a property occupied by several tenants are usu - ally paid on a pro rata basis and reflected in the maintenance. 6.11 Insurance Issues Neither federal nor state civil codes specifically address insurance requirements for leased prop - erties. However, tenants are generally expected to obtain an insurance policy covering civil liabil - ity and fire, as fire-related damages are the ten - ant’s responsibility under federal and state civil codes. Landlords typically take out insurance cover for the property of leased premises. In commercial and industrial leases, tenants may sometimes be responsible for taking out and paying for insur - ance cover for the property, including for risks such as earthquakes and floods. Insurance for common areas is usually included in the main - tenance fees charged to tenants. Tenants primarily obtain insurance related to the property itself. Unless financing is involved, it is not customary to have business interrup - tion insurance in Mexico, which primarily covers property closures due to Acts of God or force majeure. It is not standard practice to include insurance cover for pandemics or similar situ - ations.
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