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rent paid in pesos, what's the law?


Lexy

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Sunny, I am sorry that you have chosen to take advantage of your landlord's kindness in allowing you to have your dog by also bringing in a parrot. The next tenant will likely not get the privilege you were given. The owner will have learned his lesson and make no exceptions.

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I am not renting month to month. My contracted lease is from a beginning date to an ending date of one year duration. I understand a renewable one year lease as it allows either party to withdraw at it's termination even though he assured the Realtor and myself that if we were both happy at the end of each year he is considering it a five year agreement. At the time he had made an exception for my small dog on the promise that she is quiet and well behaved (if I'm at home or not) which she is when he had adamantly specified there were to be no pets. We'll see what happens when he finds out about ChuChu the wondrous parrot.

The minimum time for a lease is one year signed for one year when you sign the lease. You have a one-month rental signed 12 times for 12 months. At any time you or the landlord can refuse the next month rent.

You are not protected by the Landlord/Tenant Code. The landlord can on March 1, tell you to move that day without warning. He cannot do that with a one-year lease even if it is time to renew it on March 1.

Like you wrote, he is a lawyer and he figured out how to get around the Landlord/Tenant Code without you knowing any better. You are renting no differently than a month to month at a hotel with no tenant rights and no rights to stay. To me, that is a bad situation. You would be better off renting month to month at Hotel Perifico and it would be less money.

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Ha! What you say is probably true and I may find myself out on my a$$, but my three past landlords said that birds don't count only cats and dogs. Even though I admitted to having 9 birds. And if my hearing is correct, I believe there is a parrot at his house also. When I told the daughter I loved the house she said her father was very pleased with me also. I don't think I really have a problem.

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Nonsense. Completely false.

Jalisco Landlord/Tenant Code

Which part of the law is Jalisco wrong?

Article 2041.- When the market value of the property is the equivalent to ten thousand days of minimum wage in the following rules shall be followed: I. As regards the amount of income: a) It shall not exceed twelve percent per annum on the value to report the property tax; B) Where no tax value or it had not been updated in the past three years, the amount of income can not exceed ten percent annual market value of the property; c) As for the construction or reconstruction of the property subject of the lease has been obtained preferential financing for use in these purposes, the amount of the rent will be fixed according to the same programs and criteria; and II. In terms of duration: a) The minimum period of validity shall be one year; B) The term shall be binding only for the landlord; c) The lessee may terminate the contract at any time with the obligation to the payment of rents to cover them until the date on which fully vacate the property and available to the lessor.
Article 2042.- The provisions contained in the above article are mandatory. Therefore, they are inalienable and therefore any stipulation to the contrary shall be void.

Protections of one year lease:

Article 2043.- In the case that Article 2041 refers, where agreements that generate more onerous obligations to the lessee are held, they will be automatically void, regardless of whether this is indicated in the form of receipts, vouchers, letters or any other document, without prejudice to criminal liability incurred.
Article 2044.- At the end of the lease the lessee complied in time with all the obligations that the law and the contract would have been imposed, it shall be entitled to extend it by one year.

No protection or right to lease another year if there is not a one year lease previously.

The law clearly states the amount of rent is frozen in the lease when the lease is signed. It cannot fluctuate and rent is paid in pesos.

"the amount of the rent will be fixed according to the same programs and criteria; and II. In terms of duration:"

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Ridiculous. How is it you can make such statements without knowing absolutely what my lease states. It specifically acknowledges the length of my lease for the entire year and specifies the steps that must be followed for the lease to be terminated by either party. The "Promise to Pay" forms hold me responsible to make each payment monthly and on time. I had never seen them before, but since I always pay my rent early and have even paid for 6 months in advance to help with the cost of improvements, I had no problem with the legal forms. Then again I've rented three times without a lease and once it was month to month after the lease ran out. No problems.

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Ridiculous. How is it you can make such statements without knowing absolutely what my lease states. It specifically acknowledges the length of my lease for the entire year and specifies the steps that must be followed for the lease to be terminated by either party. The "Promise to Pay" forms hold me responsible to make each payment monthly and on time. I had never seen them before, but since I always pay my rent early and have even paid for 6 months in advance to help with the cost of improvements, I had no problem with the legal forms. Then again I've rented three times without a lease and once it was month to month after the lease ran out. No problems.

I am citing the law. Your lawyer landlord knows the law.

You do not have a lease under the Landlord/Tenant Code and he can stop you from renting anytime he wants, which I am sure was his intention. Otherwise, why wouldn't he have you sign a 1-year lease and not 12 separate one month rental agreements? Presigned rental agreements are meaningless. They are a promise in the future and that future can be stopped.

Believe what you want to believe, but you are not protected by the law and he knows it.

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I still do not understand the argument that paying rent in U.S. Dollars converted each month to the then exchange rate wouldn't mean I am paying more rent each month.

And, I think you never will, so, don't give it another thought. :D

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And, I think you never will, so, don't give it another thought. :D

The law states the rent amount is fixed throughout the term of the lease so it cannot fluctuate based on the exchange rate.

Maybe it is you who can't understand it. Nowhere can a lease allow the rent to change in the duration of the lease.

Article 2041

II. In terms of duration: a) The minimum period of validity shall be one year; B) The term shall be binding only for the landlord; c) The lessee may terminate the contract at any time with the obligation to the payment of rents to cover them until the date on which fully vacate the property and available to the lessor.

Article 2042.- The provisions contained in the above article are mandatory. Therefore, they are inalienable and therefore any stipulation to the contrary shall be void.

Article 1987.- The lease must be in writing whenever it relates to real estate. In the case of movable or intangible, it must be given in writing when the rent exceeds twenty days' minimum wage.

Article 2043.- In the case that Article 2041 refers, where agreements that generate more onerous obligations to the lessee are held, they will be automatically void, regardless of whether this is indicated in the form of receipts, vouchers, letters or any other document, without prejudice to criminal liability incurred.

Article 2044.- At the end of the lease the lessee complied in time with all the obligations that the law and the contract would have been imposed, it shall be entitled to extend it by one year.
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It's a wonder there are any rental agreements in Mexico as only one person seems to know the law regarding such.

If you don't have USD available to rent a property that requires such....then don't rent that property and look for one that is peso denominated if that is the only currency you have available.

In rentals, I think there is a seat at the table for everyone if you look for the right fit, and this endless quoting of "interpretations" of the law serves no one except know it all forum experts.

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It's a wonder there are any rental agreements in Mexico as only one person seems to know the law regarding such.

If you don't have USD available to rent a property that requires such....then don't rent that property and look for one that is peso denominated if that is the only currency you have available.

In rentals, I think there is a seat for everyone at the table if you look for the right fit and this endless quoting of "interpretations" of the law serves no one except know it all forum experts.over paidpenalities

A Landlord can rent in dollars and he can find some sucker to rent from him, but when he ends up in court for violating the law and overcharging, he can be ordered to pay back all the over paid rent plus any necessary, interests, fines or penalities. Is that worth it? I bet it isn't.

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A Landlord can rent in dollars and he can find some sucker to rent from him, but when he ends up in court for violating the law and overcharging, he can be ordered to pay back all the over paid rent plus any necessary, interests, fines or penalities. Is that worth it? I bet it isn't.

So says you. Cite some court decisions where this was adjudicated.

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Isn't a home lease in Mexico between 2 parties from The US or Canada more an amicable agreement than a legal one?

Wise words. Mexican culture in general is about being amicable. Be observant, see the subtle respect that is expected, pay attention to the nuances.

Someone offered me this little nugget of wisdom about renting in a less developed country: If a landlord is gonna jerk you around (I cleaned that up) they won't use the lease agreement to do it.

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Seems to me that it is much more beneficial to give specific examples of what has happened, not what might happen. What "might happen" is just a guessing game. Remember, this is Mexico and one person's guess is as good as another's. :D

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Wise words. Mexican culture in general is about being amicable. Be observant, see the subtle respect that is expected, pay attention to the nuances.

Someone offered me this little nugget of wisdom about renting in a less developed country: If a landlord is gonna jerk you around (I cleaned that up) they won't use the lease agreement to do it.

Courts are not about being amicable.

The reason Mexico has laws is because people are taken advantage of without laws.

Many people get jerked around by landlords and they do have leases. Most tenants cannot afford a lawyer and most lawyers don't know the law.

You have some odd ideas for someone who doesn't live here.

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So says you. Cite some court decisions where this was adjudicated.

Read the law. You don't need court decisions in Mexico because Mexico is a not a common law country.

I cited a Mexico Supreme Court decision that stated what is the legal currency to be used in Mexico.

All cases are decided independently so there isn't really any case law to cite. The law itself is clear, a lease stays the same for the term of the lease, the pesos is the only currency to be used in Mexico, a landlord cannot raise the rent during the term of a lease and basing rent on the dollar raises the rent.

I think it will be interesting if someone files with Profeco about landlords advertising in dollars and not keeping the rent the same in the pesos amount during the lease.

Profeco can fine up to 1 hundred thousand pesos. That would be interesting.

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Mexican Supreme Court:

"The Congress has the power to "make rules to determine the relative value of foreign currency", as stated in Article 73 , section XVIII, of the Constitution of the United Mexican States and the seventh paragraph of Article 28 of the Constitution. The power of Congress to determine the relative value of foreign currencies are updated by monetary law. Actually what it does is prohibit the legal tender of another currency in Mexico, solving the problem of payment where an obligation is contracted in a currency other than the Mexican peso. Whose law also makes a reference to the provisions issued by the Bank of Mexico. The Bank of Mexico has authority to regulate the changes and to issue general rules. In its organic law passed by Congress in Article 35 the bank's role in determining the exchange rate is explained. Hence, the Bank of Mexico is the one who determines the applicable exchange rate to pay obligations contracted in foreign currency"

Dollars are illegal in Mexico and cannot be in a contract that is made in Mexico.

If a contract is made between parties in different countries, then another currency can be in the contract but payments must be in pesos at the exchange rate at the time the contract was signed.

Landlords here are not making contracts between parties in Mexico and the U.S.

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And then there are the folks who do not have a US account because they are not from the US. Some of us base our finances on the CDN dollar vs the MX peso and then a third party comes in and asks for their rent in US dollars. The USD and the CDN dollar presently have 30% difference in the US's favor. I agree, the country you are in should dictate the currency you use, unless you are buying a product from the USA. Seems pretty straight forward.

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