The Lease Agreement - What is Included?
The Lease Agreement
Once an offer is accepted, a formal written rental agreement is signed by both parties (it is not necessary to have the agreement notarized). The rental agreement is a binding private legal contract which grants the tenant temporary use of the property in exchange for a specified amount of rent. Rent is usually paid on a monthly basis, unless specified otherwise in the contract. It is advisable to have the contract reviewed by a lawyer to ensure that its terms do not violate the Civil Code. Real Estate agents generally ensure that this is done.
What is Included in the Rental Agreement?
The contract must include the names of all parties involved, including the fiador, aval or fianza. Only the actual owner (or a person who has power of attorney on behalf of the owner) may rent out a property. Co-owners of a property may only rent their share of the property – if an entire co-owned property is rented, all co-owners must be in agreement. Before signing a rental agreement, the tenant or agent should check the landlord’s or the person with power of attorney’s (poder) ID, the property deed specifying ownership, and the statement of property taxes (predial).
Also included in the contract are the location and description of the property, the permitted use, and any other terms and conditions to which the parties have agreed (such as an exit or diplomatic clause, or terms of subletting). The contract almost always includes the signature of a guarantor in addition to that of the landlord and tenant.
According to the Illegal Activity Waiver, the Government of Mexico may take possession of any property used to conduct illegal activity. A clause exempting the owner from any responsibility for such activities is a standard addition to rental agreements.
The process of buying, selling or renting any type of property or land is regulated at a state level in Mexico. While some procedures in the property purchase process may be identical in all states, others may differ. This page gives an overview of what is involved in buying a property in Mexico, prepared by certified real estate agents who are experts in the Mexico City property market. It contains advice that should not be considered a legal document nor should it imply any liability for its authors in case there are some discrepancies with the processes involved for the sale or rental of a property. It should also be noted that for particular practices and requirements in areas other than Mexico City, advice should be sought from professionals familiar with the property market in that state.
Information provided by Carmella Peters-Romero, Vanessa Kerr and Hector Romero of Peters & Romero Bienes Raíces, Tel: 55 3713 0985 / 55 6708 4772 / 55 4341 3131