Find out all about leasing contracts: characteristics and most important clauses.
What is your preferred investment modality? While some of the most popular ones, such as Stocks, funds and bonds promise good short-term returns, in some cases investing in real estate provides more security and liquidity for your future. That is why today we will tell you more about the lease contract; the most important clauses and characteristics that you should know for its elaboration.
We have previously created specialized content oncontracts of sale and purchaseWe invite you to take a look at it. Now, in the real estate world, A lease is a legal instrument that formalizes the relationship between the parties involved, in this case, between the lessor and the lessee. The lease contract establishes the rights and obligations to be followed, as well as the penalties in case the parties do not comply with the initial conditions.
In Mexico, a lease agreement serves to enforce the rights and commitments of both parties with respect to the use of real estate and thus avoid conflicts in the future. By having a written agreement, both parties have a clear and objective reference of what was agreed at the beginning, which reduces the risk of misinterpretation.
Broadly speaking, the lease is also important because it specifies different types of responsibilities, such as maintenance and repair of the property. It also establishes the terms of payments and penalties in case the tenant fails to comply with the terms of the lease.
A lease agreement in Mexico may have an indeterminate number of clauses and characteristics. Here are some of them that should not be missing in your lease contract:
While the above clauses are the most relevant to the lease, there are other types of special clauses which are intended to further specify the use of the property.
The Federal Civil Code in Mexico establishes that the lease of a property must have a term of at least 1 year. However, both the lessor and the lessee may establish a longer term or for an indefinite period of time.
It is essential to specify the dates or period of time that the property will be leased, as well as the conditions for renewal. Likewise, deadlines should be added for notifying any change in the agreement, whether to renew, cancel and change conditions.
In the event that the terms of the lease change, such as the agreed price, it is necessary to add an addendum or make a new contract where both parties agree to the adjustments made.
The costs for the payment of a lease, in general, must be covered by the lessor in the case of requesting the services of a lawyer specialized in real estate law for the preparation of the document. Unless this payment is agreed to by both parties, in which case the costs for legal advice are usually split.
In most cases there are standardized lease contract formats, which are usually very low cost or may even be available on digital platforms for free.
On the other hand, if a specialized contract is required, whose practice is highly recommended to avoid misunderstandings, the cost is determined by the specialist attorney according to his hourly or service fees.
At Nolab we have exclusive real estate projects in the best areas of the CDMX so you can buy, invest and make the most of the benefits and advantages that leasing properties in the city offers in areas such as Condesa, Roma y Polanco.
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Alfredo Obregón is the co-founder and CEO of Nolab, a real estate platform focused on investment, sales, and property management across international markets.
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