Client Alert

On July 15^th, 2020, local congresswoman, Leticia Estrada Hernández, presented a bill to repeal the Condominium Real Estate Property Law of Mexico City and therefore, issue a new one in accordance with local civil and notarial provisions, as well as the imposition of prohibitions and sanctions on temporary accommodation services such as Airbnb.

Said bill arises from the problematic faced by the housing units and condominium complexes in Mexico City, resulting from the deterioration in the hydro sanitary and structural facilities, as well as the exposure to fraudulent administrations. For the aforementioned, the need to amend the provisions and improve the administration and accountability instruments of the housing complexes of the capital.

The most relevant modifications of this bill are (i) the inclusion of the proposals made by the College of Notaries in the obligation to register protocols related to the incorporation, modification or termination of a Condominium Real Estate Property regime; (ii) elimination of the monetary compensation to mitigate urban or environmental impact; (iii) the obligation to register each private unit; (iv) extensive wording regarding the authorities and composition of the owners’ meetings.

At the same time, prohibitions are established in terms of performing any alterations in the real estate project after the condominium regime is incorporated and in its sanctions chapter, the bill emphasizes sanctions on the Bed and Breakfast services, referring directly to the platform of housing services, Airbnb, arguing that it affects neighborhood and family coexistence.

It is relevant to establish that this bill prohibits and financially penalizes to anyone who performs temporary housing services through digital platforms such as Airbnb, from 10 to 100 times the Mexico City Account Unit. Said document undoubtedly violates the right of private property, the generality an impersonality of the law and show the lack of legislative technique. The bill is still under discussion by the Congress of Mexico City and has not yet been approved.

If you have any questions or additional comments, please do not hesitate to contact us.

Contact

Berenice Soto
bsoto@cuestacampos.com

Jesús Bueno
jbueno@cuestacampos.com

www.cuestacampos.com

The above is provided as general information prepared by professionals with regard to the subject matter. This document only refers to the applicable law in Mexico. While every effort has been made to ensure accuracy, no responsibility can be accepted for errors or omissions. The information contained herein should not be relied on as legal, accounting or professional advice being rendered.