Decree 107 was recently published in the Official Newspaper of the State of Nuevo León, which amended and added various provisions of the State Civil Code regarding the leasing of urban properties.

With these modifications, the legislator seeks to balance the relationship between landlords and tenants, establishing new obligations and limits that will transform the way in which lease agreements are concluded and managed in the state.

Here are the most important points to keep on your radar:

Amendment to Article 2346

• The landlord is required to provide a receipt for each monthly payment that the tenant pays (without specifying how the receipt should be issued).
• If the landlord does not provide the receipts for more than three months, it will be understood that the payments were made, unless proven otherwise by an appropriate request.
• The landlord may not require more than one monthly rent as a security deposit.

Addition of Article 2346 Bis

• In the case of urban properties intended for housing, the duration of the contract will be six months, although the Decree does not specify whether this period should be understood as minimum or maximum.
• The rent must be agreed in Mexican pesos, and can only be increased annually, up to 10% of the agreed monthly amount.
• If it is intended to apply an increase of more than 10%, it will be necessary to conclude a new lease agreement.

These reforms represent a significant change in the regulation of leases in Nuevo León, although they leave some points open to interpretation that will surely be subject to judicial analysis in the short term.

In this new context, landlords, tenants and legal advisors must review their current contracts and adapt their practices to the newly approved provisions.

Having specialized legal advice will allow us to anticipate possible contingencies, protect the interests of both parties and ensure regulatory compliance in the face of this new phase of urban leasing in the state.

‍