Jump to content
Chapala.com Webboard

is a multi-year house lease now illegal?


Recommended Posts

I was just informed by the owner of a rental agency that multi-year house leases have recently been made illegal in Mexico.  Is there someone with specific knowledge in this area that can clarify this for me?  Thanks so much.

Link to post
Share on other sites

I did not know that multi-year house leases were ever legal here in Mexico. I am on about my 7th annual lease on a condo in west Ajjijic owned by a nice guy from Guanajuato and Chicago, and we both like the idea of renewing every year--it is an opportunity to discuss things annually. I rented this condo thru a rental agency the first year, but then the owner and I decided we could eliminate the middle person and save a few bucks a month, as I had owned a property here when I first arrived, so I was adept at taking care of whatever was needed. It has worked very well. That's just to say: an annual renewable lease protects both you and the landlord, and gives you both the opportunity to discuss the state of the property and plans for the next year. IMHO a year is a long time in terms of what can happen with houses here--a one-year lease is good for both tenant and owner. Remember, earthquakes, floods, termites and other acts of God abound here.

  • Like 2
Link to post
Share on other sites

Thank you, Jay Bearll, for your perspective.  However, in this case it is specifically a multi-year lease that is desired. 

Link to post
Share on other sites
4 hours ago, pappysmarket said:

Since this is a legal question and you want to be certain of getting the real answer, why not make an appointment with an attorney?

Thanks for your suggestion but I only need some general help with this.  I`m willing to see what turns up on the board.

Link to post
Share on other sites

We are in the middle of our second five year lease.

Before we signed our first 5 year lease I was told by our attorney that a lease was a contract and could specify any numbers of years duration. I have always felt the the realtors prefer 1 years leases for economic reasons. I do not if this has changed.

 

Link to post
Share on other sites

I have a multi-year lease agreement that was reviewed and notarized by one of the major Notarios in Chapala and we got around the annual renewal issue by putting an "auto" renewal clause in it.  It merely states that the lease is renewed unless either party comes forward and requests changes prior to the annual renewal date.

Link to post
Share on other sites

In early 2015, during my rental search I was told that only leases of one year duration were legal, I think by a rental agent. Then when I found a place, I asked for and got a two-year lease with a large realtor here at Lakeside. I just renewed that lease for one year.

In two previous rentals, I had two-year leases. I lived in each one for eight years. It got so, we just initialed the leases after awhile and called them month-to-month leases. Very loosey-goosey.

BD, if it's important to you, ask a lawyer, if you think that would get you the final, legal word on the issue. But I wouldn't bet on it. From what I gather, anything goes around here, as usual and on most issues. I had more than one lawyer say, in regards to a lease I signed, "Oh, if both parties signed it, it's legal."

Lexy

 

Link to post
Share on other sites

A single year lease is a real problem for businesses. Many commercial  properties are just two walls and a glass front and tennant is responsible for floor divider wall plumbing cy. The cost of getting into a retail store front can be really hign.When you leave that location the owner can (usually does not) demand the property be returned to the condition when rented. We have had to remove walls at our expense. This would be a real deterrent to gettimg a business going. Normally these capital improvements are amortized over several years and this would be impossible in the one year lease senario. Mexico has never been particularly friendly to businesses so it's possible. Think about a business renting a gaint warehouse and making billions of pesos in improvements for their manufacutring.

Link to post
Share on other sites

These various responses are exactly why I would consult an attorney. Not just a question over lunch but a written opinion. If you ask them to put it in writing the fakers will decline and the good ones will actually research it for you.

But I understand there is a Notary from Minnesota around who might be cheaper.

  • Like 1
Link to post
Share on other sites
8 hours ago, geeser said:

A single year lease is a real problem for businesses. Many commercial  properties are just two walls and a glass front and tennant is responsible for floor divider wall plumbing cy. The cost of getting into a retail store front can be really hign.When you leave that location the owner can (usually does not) demand the property be returned to the condition when rented. We have had to remove walls at our expense. This would be a real deterrent to gettimg a business going. Normally these capital improvements are amortized over several years and this would be impossible in the one year lease senario. Mexico has never been particularly friendly to businesses so it's possible. Think about a business renting a gaint warehouse and making billions of pesos in improvements for their manufacutring.

Commercial leases are not the same as residential leases which used to be restricted to 2 years, I don´t know if it changed [probably not] or different in different states or what. Commericial leases can be as long as 50 years. Some commercial leases are for the exclusive use of the land only - the lessees build their own structures. This is common in our city. It might even be common in Mexico in general.

Link to post
Share on other sites
4 hours ago, R2D2 said:

One year is the maximum term for a lease contract according to the law.

R2D2, would you be willing to say how you know this is true or where you know this is referenced?  Thanks much.

  • Like 1
Link to post
Share on other sites
A quick search of federal law has this about residential leases. It doesn´t mention the term length of a lease. It does state the lease amount has to be in pesos.
 
 
"Federal Civil Code:
 
Article 2448-C. The minimum duration of any lease of urban properties for the room/house/apartment shall be one year for the lessor and lessee, unless otherwise agreed.
 
Article 2448-D. For the purposes of this Chapter, the rent must be stipulated in national currency
 
Article 2448-F. For the purposes of this Chapter, the lease must be given in writing, the lack of this formality will be imputed to the lessor.

The contract must contain at least the following stipulations:

◾ Names of lessor and lessee.


◾The location of the property.


◾ Detailed description of the property object of the contract and of the facilities and accessories with which it counts for the use and enjoyment of the same, as well as the state that they keep.


◾The amount of the rent.


◾ The guarantee, if any.


◾The express mention of the residential destination of the leased property.


◾The term of the contract.


◾The obligations that the lessor and lessee contract in addition to those established in the Law.

Article 2448-G. The lessor must register the lease to the competent authority of the Department of the Federal District. Once this requirement is fulfilled, it will deliver to the lessee a registered copy of the contract.

The lessee will have action to demand the registration mentioned and the delivery of the copy of the contract.

Likewise the lessee will have the right to register his copy of lease contract before the competent authority of the Department of the Federal District.

Back to top Back to index


◾Article 2448-H. The leasing of urban properties for the room does not end with the death of the lessor or the lessee, but only for the reasons established in the laws.

To the exclusion of any other person, the spouse, the spouse, the concubine, the children, the in-line ancestors or by affinity of the deceased tenant shall be subrogated to the rights and obligations of the deceased tenant, under the same terms of the contract, Real and permanently inhabited the property in the lessee's life.

The provisions of the preceding paragraph are not applicable to persons who occupy the property as sub-recipients, assigns or other similar title other than the situation provided for in this article.

Back to top Back to index


◾Article 2448-I. (Repeals).

Back to top Back to index


◾Article 2448-J. In the event that the owner of the leased property decides to alienate it, the tenant (s) shall have the right to be preferred to any third party in the following terms:

◾ In all cases, the owner must give written notice to the tenant of his desire to sell the property, specifying the price, terms, conditions and modalities of the purchase and sale;


The tenant (s) shall have fifteen days to give written notice to the lessor of their will to exercise the right of preference set forth in this article in the terms and conditions of the offer, exhibiting the amounts due at the time of the Acceptance of the offer, conforms to the conditions indicated therein;


◾ In the event that the landlord changes any of the terms of the initial offer, he / she will be required to give a new written notice to the tenant, who will then have a new term of fifteen days. If the change refers to the price, the lessor will only be obliged to give this new notice when the increase or decrease of the same is more than ten percent;


◾ When dealing with property subject to the regime of ownership in condominium, the provisions of the law of the subject will be applied; Y


◾ The purchase and sale made in contravention of the provisions of this article will grant the lessee the right to claim damages, without the compensation for such items being less than 50% of the rent paid by the lessee in the last twelve Months. The aforementioned action will prescribe sixty days after the tenant becomes aware of the realization of the respective sale.


In case the lessee does not comply with the conditions established in fractions II or III of this article, he will preclude his right."
 
 
  • Like 1
Link to post
Share on other sites

Yes that is good work. The problem is that the OP said he was told that the law was RECENTLY changed. Which is why I would want a lawyer to research it for me. Just me.

Link to post
Share on other sites

Thanks, Alan, always thorough.  Federal law says nothing about the upper end of a lease term, only that the period must be stated.  Thanks, everyone, I`m satisfied.

Link to post
Share on other sites

Realistically speaking I suspect you'll find very few lease situations that warrant getting involved with Mexico's byzantine legal system.

A lease is only as good as the people signing it.  As a practical matter it is generally better for the landlord to just keep the deposit and move on when someone breaks a lease.  Equally true is that tenants don't have a lot of practical recourse if the landlord decides to keep the deposit unfairly.

Check out who you rent to or who you rent from.  That's probably your best and only practical defense.

  • Like 1
Link to post
Share on other sites
Quoting from AlanMexicali's post, doesn't this answer the question? I read the article to mean it can be for more or less than one year if agreed to.
 
Article 2448-C. The minimum duration of any lease of urban properties for the room/house/apartment shall be one year for the lessor and lessee, unless otherwise agreed.
 
With rentals, the bottom line is: It's all a negotiation between realtor or landlord and in coming to terms, no matter what the civil code says. My current lease, about to expire, is with a well-known, large realtor and the lease does not comply with a number of the Articles cited above. Nevertheless, local lawyers found  it binding as both parties agreed by signing.
 
I'm about to renew my lease, same realtor, same landlord, but there will be some changes made that will make the deal as equitable to me as it is to my landlord. It's not that I got smarter; I knew back then (two years ago) I didn't think all the terms were legal. But two years ago, in a difficult personal situation and needing this home that met all our hard-to-find prerequisites, I signed a lease I knew was more to the landlord's advantage than mine.
 
If you're not sure the lease is fair to you, get a lawyer to look it over before you sign. Might be good to be armed with the material Mexicali posted here, citing the law. But I still think a lease that complies with the civil law here is a rare document.
Lexy

 

Link to post
Share on other sites

Beware, the State Civil Code applies and is cited in most rental contracts.  I check ed the state code again as well as the federal court caselaw site and nothing.  This may be a policy by one rental agency to implement a strategy to boot tenants that dont pay so it may be a legal strategy that has worked in the past (they just changed both local civil court judges) but I wonder if it will work in the future or withstand appeals. 

Link to post
Share on other sites

I'm sorry, Intercasa, but I'm not following anything you say here. What do you mean that "This" may be a policy by one rental agency? To implement a strategy to boot tenants?

Lexy

Link to post
Share on other sites

I rent, but without a lease in the last few years by mutual agreement with the landlady whom I get along well with for the last 8 years.  I really like the house (except for the noise issues) and for her, I'm the ideal tenant.

Question:  How does the peso exchange rate apply to the issue of the OP?  If you renew every year and have income from the US, can the owner adjust your rent according to the peso exchange rate?  I used to be able to pay with a check but the last few years no one will take US checks anymore.  I was never notified of any desire for change and kept paying the exchange rate (13) that was in effect when I moved in, when I had to switch to paying in pesos.  Through this board, I learned that the rent to a foreigner can't be pegged to the exchange rate.  Any comments?

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...