On August 28, 2024, a decree was published in the Official Gazette of Mexico City amending and adding provisions of the Civil Code and the Housing Law of Mexico City (the “Decree”), to curb the excessive increase in the annual rental price of properties with residential land use.

The Decree amends the second paragraph of article 2448 D of the Civil Code for the Federal District (now Mexico City) (the “Civil Code”), providing that the increase in rent cannot, in any case, exceed the inflation index published by the Mexican Central Bank in the immediately preceding year. Consequently, agreements that provide increases higher than this limit will be null and void.

In addition, a third and fourth paragraph are added to article 2448 F of the Civil Code, providing the obligation for lessors to register their lease agreements in the digital registry of lease agreements (the “Registry of Lease Agreements”) within 30 days following the execution of the agreement.

Regarding the lease agreements that were in force prior to the publication of the Decree, an extended term of 90 days is granted for their registration in the Registry of Lease Agreements, considering the date of entry into force of the Decree and the implementation of such registry.

The information contained in the Registry of Lease Agreements will be protected under the Law of Transparency, Access to Public Information and Accountability, as well as the Law for the Protection of Personal Data in Possession of Obligated Subjects of Mexico City, so that personal and contractual data may only be disclosed under court order.

The amendment to the Mexico City Housing Law (the “Housing Law”) provides the implementation of the “Mexico City Housing Information System” as a database designed to record and updated and accurate information on the real estate market, housing developers and social housing production. Its main objective is to keep the housing inventory up to date.

Such Housing Law provides the penalties applicable to individuals and public servants who fail to comply with the provisions of such law and the corresponding regulatory standards.

The Decree came into force on August 29, 2024, and to this date, no official communication has been published to confirm the availability of the Registry of Lease Agreements.

Any questions or doubts regarding this bulletin should be directed to:

Fernanda Rubio
fra@cmgdlaw.com