MEXICO Law and Practice Contributed by: Roberto Cannizzo, Carlo Cannizzo, Stefano Amato and Mauricio Moreno-Rey, Cannizzo
2.6 Important Areas of Law for Investors The main areas of law to which an investor must pay attention when acquiring real estate are as follows: • tax aspects (mainly determined by the Fed - eral Tax Code, the Income Tax Law and local real estate acquisition provisions); • environmental aspects; • agrarian background and regularisation pro - cess; • urban development and construction limita - tions; 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 restric - tions). 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 Mexico, municipalities regulate zoning and planning under federal and state guidelines. Determining land use requires analysing zon - ing and planning laws. At the state level, this includes State Partial Development Plans, while municipal regulations involve Municipal Devel - opment Plans, Urban Development Plans, and
sometimes Detailed Plans. To confirm land use, purchasers must review zoning certificates and licences issued by the relevant authority. Environmental regulations include General Eco - logical Plans at the federal level, which promote sustainable land use, while State Ecological Partial Plans and sector-specific programmes address agricultural, territorial and urban devel - opment. Protected natural areas impose restric - tions on human activities to safeguard biodiver - sity. While development agreements with authori - ties are uncommon, they may occur for large- scale projects of significant urban impact. These agreements have been seen in developments such as marinas, golf courses, residential, hos - pitality and commercial projects, where govern - ment 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 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, Expropriation Law Possible reasons gardens, sports fields or airfields; and • construction of public infrastructure and services.
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