Modifications to the Civil Code of Nuevo León in Mexico

Decree 107, published by the State of Nuevo León on Sept. 26, 2025, modified the Civil Code of the State of Nuevo León, introducing relevant changes in the lease of urban properties in Mexico. The modifications to Article 2346 and the addition of Article 2346 BIS have already been in force since Sept. 27, 2025, and have direct implications for real estate developers who lease urban properties in the State of Nuevo León.

Key Points of the Modification

Amendment to Article 2346

The following changes have been made to Article 2346:

Although the modification applies to urban properties, it does not establish restrictions regarding the specific use of the property, so it can cover properties intended for residential, commercial or even industrial purposes.

Addition of Article 2346 BIS

This article states:

• Lease contracts for urban properties intended for housing must have a minimum duration of six months, which may be extended.
• The rent must be stipulated in Mexican pesos.
• The increase in rent payments may be annual only and may not exceed 10 percent of the agreed monthly rent.
• In the event that a rent increase is to be made, a new contract must be signed.

In particular, Article 2346 BIS refers exclusively to lease contracts for urban properties intended for residential use.

Implications for Real Estate Developers

These modifications directly impact the operation of urban rental property developments, especially those that manage multiple properties under standardized lease schemes, derived from the following:

• A minimum duration is established for housing contracts, which may require adjustments in business models that contemplated shorter terms.
• The deposit amount is limited, which may affect previously used security deposit schemes.
• The obligation to issue valid receipts is reinforced, which requires stricter administrative controls.
• Restrictions on rent increases are introduced, which must be reflected in new contracts.

Recommendations

If your real estate operation includes lease contracts for urban properties, it is important to review your contractual models in light of the new regulations.

Holland & Knight has extensive experience in the design and review of lease agreements for real estate developments. Please contact the authors if you have questions about implementing these reforms and ensuring that your operations remain within the current legal framework.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.