Basic terms when renting real estate in Mexico - Real estate in Mexico

When you look at real estate listings in Mexico, meet with a realtor, or sign a rental contract for an apartment, you are likely to encounter a number of specific terms that may not be entirely clear, especially if you are not familiar with local practices and language peculiarities. These terms can relate to both the terms of the lease and the legal aspects of the transaction.

The Mexican real estate market has its own specifics, and understanding the local terminology will help you avoid misunderstandings and understand exactly what is being offered to you. In this post we want to reveal the meaning of some Spanish words and expressions that are often found when renting property in Mexico. We will talk about terms such as «amueblado», «póliza de arrendamiento», «mantenimiento», «depósito» and others that you have the right to navigate in advertisements and contractual agreements.

In addition, we will also explain how these terms may affect your obligations as a tenant, and beyond that, the rights that you may be entitled to. We will look at what such important concepts as «contrato de arrendamiento», «aval», «fianza» mean. and other legal nuances associated with renting housing in Mexico.

Whether it's your first time renting in Mexico or you're a seasoned renter, understanding these terms will help you navigate the process more easily and make more informed decisions.

Amortización— depreciation. The process of recording the value of real property or equipment as it declines over time. Depreciation is more about the property owner (landlord) and the process of accounting for the value of the property or debts than it is about the tenant itself. However, in a lease with an option to buy, for example a lease with an option to buy, if the tenant decides to buy the property in the future, then the amount he pays for the lease may partially go towards paying off the cost of the property - this may be due to depreciation. In a commercial lease, if the tenant rents premises to conduct business and installs equipment or other assets in it, then depreciation of these assets will be his responsibility. In particular, if a tenant leases an office and purchases furniture or appliances, he can account for depreciation of these items in his accounting.

Amueblado— furnished. This means that the housing already has basic furniture such as beds, tables, chairs, sofas, and in addition household appliances — refrigerator, stove, washing machine. The level of furnishings can vary, and you should never expect in advance that all the pieces of furniture you need will be present. In advertisements you can find additional clarifications, in particular,

• Totalmente amueblado – fully furnished housing, ready to move in,
• Parcialmente amueblado, Semi Amueblado – partially furnished, where there is only basic furniture,
• No esta amueblado - unfurnished premises.

When renting, it is recommended to check with the landlord exactly what items are included.

Antigüedad- age of the property. Indicates how many years the property has been in existence since its construction.

Aval— guarantor. He undertakes to guarantee the solvency of the tenant. Can be an individual or legal entity who most often secures his real estate in Mexico as collateral, therefore he can be asked for an escritura pública - a certificate of ownership of his own home. If the tenant does not fulfill his obligations, in particular, does not pay rent, the landlord is able to legally recover the obligation from the guarantor. In major cities in Mexico, having a guarantor is a standard requirement for long-term rentals.

Avaluo- an assessment of the value of real estate for purchase, sale, tax or insurance, which is carried out by a professional appraiser or a specialized company. Although avaluo is more often used to determine market value in purchases and sales, it may also be useful in the rental context. In particular, if a landlord or tenant wants to make sure the rental price is correct, they can order a property valuation to check whether the rent is in line with market norms. In some cases, tenants are able to request an avaluo in order to understand how reasonable the rental rate is. This is especially important in cases where the landlord offers too high or too low a rental price. The valuation will have the ability to determine whether the price corresponds to the value of the property on the market. If a landlord wants to take a deposit on a property, they have the right to use avaluo to determine what amount of deposit would be reasonable. This can be useful when the property is of particular value, say, expensive furniture or high-quality finishing materials. When concluding a lease agreement, the lessor has the right to require the lessee to insure the property. For this, in addition, it is possible to require avaluo to establish the price of the property that is subject to insurance.

Baño— bathroom. Advertisements can contain different wording that clarify the characteristics of the bathroom:

• Baño completo – full bathroom with sink, toilet and shower/bathtub,
• Medio baño (or ½ baño) – a guest toilet that includes only a toilet and sink, but no shower,
• Baño privado - a bathroom, most often located in the bedroom,
• Baño compartido is a shared bathroom shared by several residents.

When renting, it is important to specify the number of full and half bathrooms, since in Mexico they are often indicated in the format “2 ½ baños”, which means two full bathrooms and one guest toilet.

Bodega— storage room. This has the potential to be:

• Bodega dentro del departamento/casa - a small pantry or closet for storing things inside the home,
• Bodega en el edificio/conjunto - a dedicated storage space in a residential complex, say in a basement or in a parking lot,
• Bodega independiente is a separate warehouse or industrial premises used for business, goods storage and logistics.

If the advertisement indicates the presence of a warehouse, it is necessary to clarify its location, size and criteria for use.

Casa— house. Individual housing, which usually consists of one or more floors and is designed for occupancy by one family or several occupants. When talking about casa en renta (renting a house) or casa en venta (selling a house), it often means an independent living space, as opposed to an apartment in an apartment building or condominium.

Casa en Coto– a house in a common area. Casa— This is a detached house. Coto is most often a fenced and guarded area with several houses with separate entrances, often with shared amenities such as security and access control (vigilancia 24/7), public areas (garden, swimming pool, gym, playground), guest parking, etc. This housing format provides greater security and comfort. Accommodation in Coto is usually more expensive due to additional services and monthly fees (cuota de mantenimiento).

Certificado de Tradición y Libertad- certificate of tradition and freedom. A legal document stating the history of a property, its owners, and whether there are debts or restrictions. Ensures that the property has a clean legal history and is not associated with legal disputes, debts or claims. The certificate indicates who is the current owner of the property and confirms that he has the right to dispose of the property (sell, rent, inherit, etc.). One of the most important aspects of the certificate is information about the presence of debts, liens or other legal restrictions on the property. This makes it easier to ensure that the property is not encumbered by financial obligations such as mortgages, liens or lawsuits. A certificate is required when purchasing a property or in the case of a long-term lease to ensure that the property has no legal issues and belongs to the rightful owner. In addition, if the property is sold or transferred, the Certificado de Tradición y Libertad will be used to confirm ownership and verify the history of the property. It is possible to obtain the document at the Cadastral Chamber (Registro Público de la Propiedad y Comercio) or through the notary who deals with the transaction. In some cases, banks or other financial institutions have the right to request it if the property is used for a mortgage loan.

Cesión de Derechos- transfer of rights. The process of transferring ownership or lease of a property from one person to another without an outright sale. Transfer of rights, not ownership: Unlike a regular sale of real estate, where there is a complete transfer of ownership (and registration in the cadastre), a cesión de derechos concerns only the transfer of rights that are associated with the real estate. In particular, this may be the transfer of lease rights, rights of use or other rights associated with the object. Transfer of tenancy rights: If the tenant decides to transfer his rights to lease the property to another person (particularly due to relocation or other reasons), this can be formalized as a cesión de derechos. The new tenant will pay the landlord and use the property, but the contract with the owner does not change. Transfer of rights to purchase: In addition, a cesión de derechos can be used to transfer the right to purchase a property (particularly if a person has a prior agreement to purchase but decides to transfer that right to someone else). In order for the cesión de derechos to be valid, in some cases a formal process of receipt through a notary or registration with the cadastral authorities is required. This process may include the signing of a new contract or agreement with a third party. In addition, it is important that both parties agree to the rules of transfer of rights.

This is not the same as closing a transaction or completely transferring ownership. It is rather a process in which the rights to an object are transferred to a third party. Unlike a real estate transaction (where there is a complete transfer of ownership and preparation of papers), a cesión de derechos can be less formal and the property itself remains with the original owner.

Cocina integral— kitchen, equipped to varying degrees and integrated into the living space. Typically includes storage cabinets (upper and lower), countertop, sink, stove and oven, range hood, space for refrigerator and other appliances. In other words, there should be kitchen furniture. Does not mean «built-in technology» and in general the presence of household appliances, except for the stove. Unlikecocineta(a small kitchen without full equipment), cocina integral is a complete space for cooking. When renting, check which appliances are included. Microwave and dishwasher are usually not included.

Condominio— condominium. A residential complex consisting of several apartments or houses that belong to individual owners, but with common areas and infrastructure. Main characteristics of condominio:

• Common Spaces: Contains areas such as elevators, staircases, corridors, parks, swimming pools, gyms and other common amenities that are maintained by utility bills,
• Apartments or houses: each owner owns only his apartment or house, but part of the property is the common areas, say the roof, the façade of the building or the land on which the complex is located,
• Rules: a condominium usually has strict rules of residence (reglamento interno) regarding noise, parking, renovations and other aspects of life inside the complex,
• Management: A condominium may have a management company or resident assembly that manages overall costs and makes maintenance decisions.

When renting housing in a condominio, it is important to clarify what services and rules apply in the complex, and also who is responsible for maintaining the common areas.

Contrato de Arrendamiento– lease agreement. A legal document that governs the relationship between the landlord (arrendador) and the tenant (arrendatario). The main elements of the contract are usually considered:

• Details of the parties (full name, papers, contact information),
• Description of the property (address, condition, furnishings),
• Rental period (plazo – usually 6 or 12 months),
• The amount of rent (renta) and methods of payment,
• Deposit (depósito en garantía) and its return rates,
• Obligations and rights of the parties (repairs, utility bills, force majeure),
• Availability of a guarantor (Aval) or a security deposit,
• Conditions and penalties for early termination.

In Mexico, a lease agreement has the option of being notarized, but this is not a requirement.

Corto plazo— short term rental. This is usually a lease for a period of less than 6 months. Often such housing is furnished, as it is designed for temporary residence. Payment in most cases already includes utilities - unlike long-term leases, where utilities are usually paid separately. Such housing has a higher tariff than long-term rentals. Popular among tourists - often rented out through platforms like Airbnb or agencies. When renting, check whether discounts are possible for long-term stays and whether utility costs are included.

Cuarto— usually means room, but the meaning depends on the context. If it is simply stated cuarto en renta or cuarto como habitación — this means that a bedroom or separate living space is rented inside a house or apartment with common areas (analogous to a room in a communal apartment). The toilet can be private or shared, but the kitchen is always shared. Other descriptions are possible, for example:

• Dos cuartos y un baño — the apartment has two rooms and a bathroom,
• Cuarto de servicio - a small room for servants or household appliances, usually next to the kitchen.
• Cuarto de lavado – laundry room, space for a technical sink, boiler, washing machine and dryer.

Edificio— building, usually an apartment, multi-story, or commercial structure. Main characteristics of edificio:

• A multi-storey building is usually not one house, but a building with several floors that can contain apartments, offices or commercial premises,
• Communal areas: in the edificio, in addition there may be common areas, such as elevators, halls, stairs, roof, which are maintained and maintained at the expense of residents or tenants,
• Division into floors: Unlike a casa (house), where housing is usually located on one level, in an edificio apartments or offices have the opportunity to be on different floors.

When renting or buying real estate in edificio, it is worth clarifying what services are included in the tariff, in particular, security, cleaning, elevators, etc.

Ejido– land plot for collective use. Formally owned by the state, but transferred to the disposal of the community (ejidatarios) for agricultural use. Basic nuances of ejido:

• Not considered private property - land belongs to the state, and its users (ejidatarios) have only rights to use,
• Restrictions on sale – ejido cannot be simply bought or sold like regular real estate. To do this legally, the land will first need to be disincorporated (desincorporar) and transferred to the status of private property,
• Not always suitable for construction - ejido cannot be freely built or used for commercial purposes without permission.

If the property is located on ejido, it can be risky for tenants and buyers, since such properties may not have official title deeds (escritura pública). Before renting it is assessed to check the legal status of the land. In any case, we advise you to avoid buying ejido lands.

Escritura— document confirming ownership of real estate. Main characteristics of escritura:

• A notarial document executed by a notary (notario público),
• Confirms that the owner legally owns the property,
• Registered in the Public Register of Real Estate (Registro Público de la Propiedad),
• Required when selling, donating or inheriting real estate,
• When renting, you will also need to check its availability.

If the landlord requires Aval con escritura, this means that the guarantor (Aval) is obliged to offer his property as security and he must have an escritura pública. When purchasing real estate, it is important to make sure that the seller has an escritura, otherwise the property may end up unregistered or subject to disputes.

Fideicomiso— trust agreement. Used for the purchase of real estate by foreigners in coastal and border areas of Mexico. Basic nuances of Fideicomiso:

• Created through a Mexican bank (fiduciario), which legally owns the property but manages it for the benefit of the foreign buyer,
• The buyer (fideicomisario) has full control of the property - he is able to sell, rent, inherit and even use it as collateral,
• Valid for 50 years with extension option,
• Mandatory for foreign citizens when purchasing real estate in a restricted area (zona restringida):
  • 50 km from the sea coast,
  • 100 km from the land border.

For foreigners, fideicomiso is the only legal way to own property in the coastal and border areas of Mexico.

Fraccionamiento— a residential complex or area that is plannedly divided into lots (lots) and developed with houses or apartment buildings. Sometimes Fraccionamiento is incorrectly considered an analogue of such territorial divisions as region, supermanzana or manzana, which are also divided into lots. For an area to be considered fraccionamiento, it must be officially designated as such by Mexico's National Institute of Statistics and Geography (INEGI). Key characteristics of fractiononamiento:

• This is an organized residential area, usually with private infrastructure,
• Has the right to be open (accessible to everyone) or closed (privado, coto) with security and access control,
• Often includes public areas - parks, playgrounds, gyms, swimming pools, etc.,
• Has rules of residence (reglamento) concerning, inter alia, noise levels, parking and pets.

Difference between Fraccionamiento and Coto:

• Fraccionamiento is a larger area consisting of many houses and streets, sometimes even with shops, schools and other facilities,
• Coto is part of the fraccionamiento, which is a smaller closed area with separate security,

It is worth clarifying what services and rules are included in the complex, and in addition, whether there are other maintenance fees (cuota de mantenimiento).

Hipoteca- mortgage. A loan secured by real estate that is used to purchase real estate. This is one of the most common ways to buy real estate in Mexico. Mortgage types: Ipoteca fija (fixed) — the interest rate on the mortgage loan does not change throughout the entire term, Ipoteca variable (variable) — The interest rate can change based on market conditions. To obtain a mortgage loan, the borrower must undergo a solvency check, offer documents confirming his financial condition, and select a suitable bank or financial institution. A mortgage loan typically has a long repayment term (specifically 15-30 years).

Inmobiliaria— real estate agency The range of tasks and services of real estate agencies in Mexico can be very wide: valuation, rental and sale, legal support and administration of real estate.

Inmueble- real estate. A general name for any real estate, such as houses, apartments, land.

Largo plazo— long-term lease, usually from 6 months to several years. Key details of long-term rentals in Mexico:

• Formal contract (Contrato de Arrendamiento) – most often for 12 months with a chance of extension,
• Lower tariff compared to short-term rentals (corto plazo),
• Landlords often require a guarantor (Aval) or security deposit,
• Utility bills are paid separately - electricity, water, gas, internet, but can be included in the price.

It is important to carefully read the contract, clarify the rules for renewal and return of the deposit.

Liquidación- liquidation. The process of selling real estate, especially in the event of debt or bankruptcy. Liquidation can be carried out through the court or accompanied by special procedures related to bankruptcy. This can happen through auctions or with the support of banks that sell property to repay debt. If the property owner is unable to pay the mortgage, the bank can initiate liquidation through an outright sale of the property to recover their money. This often occurs if the borrower defaults on the mortgage loan and the bank decides to sell the property to cover the debt. Liquidación in addition has the ability to mean the process of closing a sale transaction, when all obligations and documentation are finalized.

Lote— land plot, lot. Has the potential to be used for construction or other purposes such as gardening or agriculture. Main characteristics of lote:

• Size and purpose - can vary in area and purpose, from a small plot for a residential building to a large commercial or agricultural one,
• Plot in a residential complex – can be part of a fraccionamiento or condominio, where lots are sold or rented out for the construction of houses,
• In construction, a lot is often used to designate a specific piece of land within a large residential or commercial project,
• Lote can mean both a plot on which housing has not yet been built, and a plot with an already built object.

When talking about lote en venta or lote en renta, it usually refers to a plot of land that can be purchased or leased for construction or other use.

Mantenimiento— payment for the maintenance of common areas and services in a residential complex. This is not the same as utility payments. May include:

• Security and access control (vigilancia 24/7),
• Cleaning and lighting of common areas (staircases, corridors, garden, swimming pool),
• Maintenance of elevators, pumps, water supply systems,
• Repair and maintenance of public spaces (parks, gyms, playgrounds),
• Garbage removal.

Mantenimiento may be included in the rental price or paid separately, usually once a month. In condominiums (condominios) and gated communities (cotos, fraccionamientos privados) this payment is required. The size depends on the level of services and infrastructure — the more amenities, the higher the amount — and has the right to be significant. Before signing a lease, it is important to clarify who pays the mantenimiento - the landlord or the tenant.

Manzana, Supermanzana— an area within an urban division, especially in places like Cancun and other Yucatan cities.

Manzana (Mza.):

• Translated as «quarter» or «city block»,
• This is a small part of a residential area, limited by streets,
• Equivalent to a traditional quarter in other states,
• Used in addresses (say, Calle 23, Mza. 45, Lote 12 - street 23, block 45, plot 12).

Supermanzana (Smz. or S.M.):

• It is a larger urban planning unit consisting of several manzanas,
• Typically contains residential buildings, parks, schools, shops and even administrative buildings,
• Common in Cancun, where the city is built by sectors Supermanzana 1, 2, 3, etc.

Difference between Manzana and Supermanzana:

• Manzana is a small city block within a district
• Supermanzana is a large district that unites several neighborhoods (manzanas).

If the rental advertisement indicates «Supermanzana», it is important to understand that this is not just a block, but an entire urban area, within which there may be various residential complexes, shops and parks.

Mascotas— any pets. May be prohibited in some residential complexes or buildings, especially condominiums, where restrictions may be placed on the number or types of animals. In some cases, owners are required to pay a deposit or additional fee for pets, for example for possible damage or auxiliary cleaning. If you're planning to rent with pets, it's always a good idea to check with the landlord to see if pets are allowed and if there are any restrictions or additional requirements.

Notaría- notary. An official who certifies legal documents, including real estate purchase and sale agreements. Plays a key role in the real estate market in Mexico. A notary in Mexico not only certifies papers, but also performs a number of important functions, ensuring the legality and security of transactions. Basic roles of a notary in real estate transactions:

• The notary checks all papers related to real estate, including certification of ownership, the presence of debts, restrictions or other legal problems that may affect the transaction. It guarantees that the seller really is the owner and has the right to sell the property,
• After the parties have agreed on the purchase and sale, the notary draws up the contract and certifies the authenticity of the signatures. This is necessary for the transaction to acquire legal force. In Mexico, notarization of real estate transactions is mandatory.
• The notary is responsible for submitting documentation to the Property Register (Registro Público de la Propiedad) to complete the process of transferring rights to the property. This ensures that the new owner is officially registered in the state register and his rights to the property are protected,
• The notary verifies that all tax obligations associated with the property (say, real estate tax or sales tax) have been met. This prevents possible problems for the new owner.
• The notary serves as a guarantee that the transaction takes place in accordance with the law, which minimizes risks for both parties. He is able to offer advice on legal issues and explain the responsibilities of the parties, for example, in the event of termination of the contract or changes to the rules of the lease.

A notary performs legal verification of documents, draws up and registers transactions, and in addition monitors compliance with tax obligations, which makes him indispensable in the process of buying, selling or leasing real estate.

Pagares– a signed commitment to pay a specified amount by a specified date in the future. Something like a bill or payment obligation. Main characteristics of Pagaré:

• It is a financial instrument that confirms a debt and obliges a person or organization to pay money under certain conditions, such as a date or on demand.
• It indicates the amount of debt, the payer, the recipient and the payment period,
• In case of default, the owner of the note is able to file a lawsuit to collect the debt,
• When renting real estate, pagaré can be used as a method of guaranteeing payment, where the tenant signs a payment obligation in case of late rent.

Sometimes landlords ask the tenant to sign a stack of pagares, and then, after paying the next rent, they give the obligations one by one.

Poliza Juridica, Poliza de Arrendamiento— This is a kind of insurance policy or guarantee that protects the landlord from the legal and financial risks associated with renting real estate. Often used to protect against failure to comply with the terms of a lease, such as late or non-payment of rent, damage to property, subject to legal disputes, etc. The policy may cover legal fees, debt collection, or even eviction of the tenant. Póliza de Arrendamiento has the ability to include all kinds of protections for both the landlord and the tenant, for example, against unlawful actions of the landlord. A policy can be binding in some cases and is often written as part of the lease to ensure both parties are protected from potential risks.

Predial— property tax. An annual tax that property owners must pay to local authorities (municipalities) for owning land or buildings. Main characteristics of Predial:

• Mandatory for all property owners - be it residential, commercial or agricultural,
• The amount of tax depends on the assessed value of the property (avaluo catastral) and the location of the property (for example, the tax in the city center will be higher than in the suburbs),
• Tax payment is usually made annually or quarterly — depends on the municipality.

Typically, the responsibility for paying the predial falls on the homeowner — landlord.

Pre-Venta— pre-sale or pre-order of real estate, when the property is not yet completed, but is already available for purchase. This has the potential to be both residential and commercial property. Basic characteristics of Pre-Venta:

• Incompletely completed real estate - buyers have the right to purchase apartments, houses or commercial properties at the construction stage or before it begins,
• Prices below market - usually, at the pre-venta stage, the price of the property may be lower than when the project is completed, since buyers take the risk that the property is not yet ready, but receive discounts for this risk,
• Long-term payments - buyers are usually able to pay for the property in installments, with the final payments upon completion of construction,
• Warranty – Developers often offer guarantees on the quality and completion of the project, which can protect the buyer from the risk of unsuccessful completion.

Purchasing pre-venta may be profitable, but it carries certain risks, since the buyer does not see the final result in advance and may encounter delays or changes in the project.

Privada, Colonia Privada— closed or private residential areas that are entitled to limited access and ensured security. These residential areas are popular in Mexico among people seeking peace and security in big city living.

A Privada is a closed area or residential complex in which access is limited and controlled, usually with the assistance of gates and security. These complexes can be houses (casas) or apartments, and usually residents have access to common amenities such as playgrounds, parking, security and other services. A privada often uses an access control system where only residents and their guests are allowed to enter the property.

Colonia Privada is an entire residential area, which is also considered closed or private, where there is a security system, access control and other security measures. A colonia privada may have several privadas (small residential complexes), and these are often larger, more organized communities with separate streets, parks and infrastructure. The term is often used to refer to apartment complexes or residential areas where residents enjoy increased security and privacy.

Propietario— property owner. An individual or organization that legally owns certain property, be it land, house, apartment or commercial premises. The owner has every right to dispose of his property - sell, rent, inherit, etc., this is a key figure in all these processes. The owner of the property is responsible for paying taxes (in particular, predial) and other fees associated with the property, and in addition for its condition. The owner is also a lessor who rents out his property.

Recamara— bedroom. In Mexico, the number of rooms in an apartment is calculated by the number of bedrooms. Typically this is a room with a bed and a wardrobe, sometimes with additional furniture such as tables, chairs or a TV. Recatamaras may also have bathrooms (for example, “recámara con baño” - a bedroom with a bathroom). Depending on the size and purpose, the recámara has the right to be the main (master bedroom) or additional (segunda recámara).

When it comes to renting or selling housing, the recámara usually indicates the number of bedrooms in the apartment or house, which is essential for determining capacity and comfort.

Régimen de Propiedad- property regime. Indicates what type of ownership applies to the property (for example, private, common, joint, etc.).

• Private Property (Propiedad Privada) — a standard regime in which one person or legal entity has full rights to real estate and is able to freely dispose of it,
• Condominium Property (Propiedad en Condominio) — a regime in which several owners share rights to parts of common property (for example, residential complexes, apartment buildings), but each of them has ownership rights to their own separate unit (apartment, apartment),
• Communal property (Propiedad Comunal) — In some cases, real estate can be jointly owned, say in communities or in rural areas where the land is owned by a group of people.

Region— region or area. The term región is used to describe both large areas (such as Southern Mexico) and smaller units such as regions of a city (particularly neighborhoods or neighborhoods in large cities). Often within the city region and supermanzana — it's the same as in Cancun.

Subarrendar- sublease. A situation where a tenant transfers the lease rights to the property to another person. Subletting usually requires the landlord's permission, since the tenant does not have the right to rent out the property on his own without the consent of the owner. Some lease agreements may have restrictions or prohibit subletting, so it is important to check the criteria of the agreement.

Terraza— terrace. An open space, often located at floor level in a housing development or apartment building overlooking the surrounding area, on the roof of a building, or on an upper floor, intended for recreation, entertainment, or enjoying views. It has the right to be equipped for evening meetings, outdoor dining or simply for relaxation. Tables, chairs, and sometimes barbecue grills, as well as decorative elements, are often installed on the terrace. A terrace adds curb appeal to a property by increasing its square footage and offering residents additional space for outdoor entertaining. You need to understand that the area of ​​the terrace is contained in the area of ​​the residential property.

Terreno— most often the same as Lote, land plot, lot. This is a general term for land or territory, without specifying whether the site is intended for construction, commercial use or other activities. «Lote» usually implies a smaller, more specific site, often used for construction, while «terreno» may refer to the broader concept of land.

Ubicación— the location or location of some property, say real estate, store, residential building or commercial premises. Geographic location indicates exactly where the property is located, be it in a city, district or suburban area — in fact it is a point on the map. The description of the ubicación has the opportunity to include materials about transport, shops, schools, hospitals and other amenities that are located nearby. For tenants and property buyers, a convenient location is important, as it affects accessibility to basic amenities, safety, and also the value of the property.

When people talk about “buena ubicación”, this means that the property is located in a convenient and advantageous location, which usually increases its tariff and attractiveness to potential buyers or tenants.

Uso de Suelo- use of land. A term that specifies how land or property can be used according to local zoning regulations (residential, commercial, agricultural, etc.). Important points of Uso de Suelo when renting a property:

• Types of use. Depending on the uso de suelo, real estate has the right to be intended for residential, commercial, industrial or mixed purposes. In particular, if the tenant is leasing a commercial premises, it is essential to ensure that this piece of land or building is permitted to be used for retail or office activities,
• Agreement with the lease agreement. If the tenant intends to use the property for other than its intended purpose (in particular, to conduct business in the residential premises), it is essential that the landlord confirms that the uso de suelo provides for such activity. Without this approval, renting may be a violation of local laws,
• Impact on rental rates. In addition, uso de suelo can influence the rental price. In particular, premises with commercial use have the right to be valued more expensive than the same premises, but with a residential purpose.

Thus, when leasing, it is important to consider whether the purpose of the property corresponds to the planned type of activity of the tenant.

Valor Catastral— cadastral tariff. The estimated price of land or real estate. This indicator is used to calculate various taxes, such as property tax (Impuesto Predial) and other payments related to real estate. Valor Catastral may differ significantly from the market value of the property, since it is based on cadastral calculations and not on current market prices. Valor Catastral is determined in Mexico by local cadastral authorities or municipal authorities. These authorities evaluate the property taking into account various factors such as:

• Property location,
• Size and area of ​​land or building,
• Real estate category used (residential, commercial, industrial, etc.),
• Condition and age of the object.

Valor de Mercado- market price. An estimate of the value of a property, based on market conditions and demand, the price at which a property would be eligible to be sold on the open market, provided that the buyer and seller act in good faith and without coercion, and that the property is free of restrictions or legal problems. Important points of Valor de Mercado:

• Determined by market requirements. Valor de Mercado depends on many factors, including supply and demand in the real estate market, location, condition of the property, its infrastructure, economic situation in the region and other parameters. This is the price that buyers are willing to pay based on current market conditions,
• Used in selling and appraising real estate. Valor de Mercado is used as the basis for determining the sale price of real estate, and in addition for estimating the value of the property for credit, insurance or tax purposes,
• Unlike Valor Catastral, which is used for tax purposes and established by local authorities, Valor de Mercado can differ significantly from the cadastral value, since it is based on current market data and fluctuates depending on changes in the market.

Valor de Mercado is not fixed by one body, but is determined through the assessment of experts who take into account current market requirements and characteristics of the property. This is an assessment by real estate professionals such as independent appraisers (peritos valuadores) or realtors.

Vivienda- housing. Indicates residential property, be it an apartment or a house. Often used to differentiate between residential and commercial tenancies. Leases that use the term vivienda usually stipulate that the property is rented for residential purposes only and the tenant may not use it for business or other purposes.