Recent events such as the COVID-19 pandemic and structural damage caused by earthquakes, have highlighted the need for more precise and comprehensive legal frameworks in real estate contracts in Mexico. One area that has historically been addressed only in broad terms—but is now critical—is the treatment of force majeure and unforeseeable changes in circumstances, regardless of whether a party is a creditor, debtor, landlord, or tenant.
Under Mexican law, parties are allowed to waive or modify force majeure clauses by mutual written agreement. For example, a creditor might seek to exclude pandemics from force majeure protection, while a debtor may request an express suspension or restructuring of its obligations. Drafting these provisions with care and clarity can help prevent future disputes and litigation.
In addition to force majeure, other important legal elements must be considered—especially in coastal developments or areas with potential archaeological significance.
Federal concessions in Mexico are commonly granted for the use of beachfront land or access to groundwater wells, and are often cited in property purchase agreements. However, these concessions cannot be transferred between private parties and must be individually re-applied for by each new property owner or investor. The granting of these concessions is discretionary, and the government is under no obligation to approve them. Moreover, construction within federally concessioned areas is prohibited, and any violation can lead to fines or asset forfeiture.
Real estate projects may also be halted due to archaeological discoveries, as Mexican authorities have the power to suspend development until they assess the historical significance of the findings.
Another key consideration—especially for large-scale or remote developments—is the availability of electricity and infrastructure, which can significantly impact both feasibility and costs.
Legal reforms in Mexico City have also introduced new regulations for short-term tourism accommodations, such as those offered via digital platforms. Key updates include:
-
The creation of a Technological Platform Registry, identifying entities authorized to operate these platforms.
-
A new Host Registry to document those offering short-term lodging in Mexico City.
-
Requirements for hosts to comply with security, identification, reporting, and tax obligations.
-
A 50% annual occupancy cap for these rentals—exceeding this limit may lead to non-renewal of registration.
-
Anyone managing four or more units must apply for a commercial operating permit.
Additionally, amendments to Mexico City’s Civil Code and Housing Law now limit annual rent increases to the inflation rate published by Mexico’s Central Bank. A new lease registry will require landlords to register new agreements within 30 days, and existing contracts must be registered within 90 days of the registry’s operational guidelines.
To address housing accessibility, a centralized housing information system will be launched, and local authorities are tasked with supporting low-income housing development in accordance with new local rules.
Finally, the Mexico City Constitution has been amended to better safeguard public, private, and social property, aligning with protections under Mexico’s Federal Constitution.
These regulatory updates are aimed at curbing the negative impacts of unregulated short-term rentals and gentrification, while promoting more equitable urban development.
At Symbiosis, we understand how complex and nuanced Mexican real estate law can be—especially for Canadian investors, developers, or property managers unfamiliar with Mexico’s legal landscape. Our legal consultancy offers specialized support and cross-border legal insight, helping clients navigate everything from force majeure provisions and federal concession procedures to compliance with local housing laws and infrastructure due diligence. Our services bridge the legal and cultural gaps, ensuring that your real estate transactions in Mexico are secure, compliant, and strategically structured.
This article is based on original material published by Pérez-Llorca. It has been adapted for educational and informational purposes.
Interested in purchasing or investing in Mexican real estate? Need guidance navigating Mexican legal requirements from Canada?
Contact us today for tailored legal support and cross-border consulting you can trust.
Our philosophy is at the heart of our name: Symbiosis represents close collaboration built on mutual benefit and long-term value.
We provide specialized legal counsel under Mexican law to Canadian companies and individuals investing or doing business in Mexico.
Our services are tailored to each client’s specific needs, ensuring personalized guidance that supports both legal security and strategic growth.
Whether you’re expanding operations, launching a business, or acquiring property, we offer the tools and insight to help you navigate Mexico’s regulatory landscape with confidence.
Contact us or book a call—we’d be pleased to learn about your project and how we can support your success.
