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Private mediation

The alternative to the legal lease policy

An agreement registered with the court, with the force of a judgment, paid only once.

What it is

A lease with a private mediation agreement is an alternative to the legal lease policy for protecting a lease. Mediation is a voluntary procedure, recognized by the Alternative Justice Law of the Superior Court of Justice of Mexico City, in which a certified, impartial and neutral private mediator helps owner and tenant put their agreements in writing and, if a dispute arises, helps them resolve it amicably and effectively.

The mediator certifies the agreement and registers it with the court. From that moment the agreement has the force of a judgment (res judicata): if either party defaults, there is no need to start a lawsuit from scratch with lawyers; what was already agreed is enforced.

What is signed
The mediation agreement, which the mediator registers with the court.
The lease agreement between the parties, with their co-signer or guarantor, if any.
The promissory notes for the rent.

Screening of the tenant, and of the guarantor if any, is mandatory, just as with the policy.

Benefits
Paid only once

The agreement does not expire: it remains in force for as long as the lease lasts. If the contract is renewed, even for ten years, mediation is not paid again.

Convenient

No new agreement needs to be signed at each renewal; only the lease is renewed.

Secure

The agreement is registered with the court and has the force of a judgment.

Fast

In a dispute, a lengthy lawsuit is avoided, saving time, money and stress.

Policy or mediation?

Legal lease policy

  • A legal team that screens, drafts the contract and litigates in case of default.
  • One-year term; renewed and paid with each contract.
  • Lower initial cost.
  • Best suited to one-year leases or when the owner requires it.
  • Screening included.

Private mediation

  • Agreement registered with the court with the force of a judgment; enforced without starting a lawsuit from scratch.
  • In force for as long as the lease lasts, even if the contract is renewed.
  • One-time payment; higher initial cost.
  • Best suited to leases that will be renewed: from the second or third year it usually works out cheaper.
  • Mandatory screening, charged separately.

A practical example, with a rent of $45,000 and no guarantor: the policy costs about $13,000 per year (about $39,000 over three years); mediation in this case costs about $27,300, paid once. With a rent of $80,000: policy about $22,000 per year; mediation about $30,300. Approximate figures, before VAT. The choice between policy and mediation is the owner's: each owner decides which protection they accept.

Frequently asked questions
What makes private mediation different?

The mediation agreement is registered with the court and has the status of an enforceable judgment. That means that if either party defaults, there is no need to start a lawsuit from scratch: in theory the resolution should be immediate, because what was already agreed is enforced. It is also paid only once and remains in force for as long as the lease lasts, even if the contract is renewed.

What does the mediator's service include?

The mediator drafts the agreement based on the lease and its terms, and registers it with the court. That is the scope of the mediation service. Even so, our intention is always to help you: we will stay attentive to any situation and can recommend legal, tax or any other support you need, without this implying any liability on our part.

If there is a default, who represents me?

The mediator is impartial by law, so they cannot represent either party. If the agreement needs to be enforced, the landlord or the tenant must hire their own lawyer. We support you as far as we are able, but we are not a law firm or an insurer, and we do not cover defaults. We will gladly recommend trusted lawyers.

Is the outcome guaranteed?

No. The outcome depends on each judge's criteria. Mundo Urbano and the mediator are not responsible for the ruling or resolution issued by the authority.

Does the tenant have to be screened?

Yes. Screening of the tenant, and of the guarantor if any, is mandatory and has its own cost.

The resolution of any dispute is subject to each judge's criteria. Mundo Urbano is not responsible for the ruling or resolution issued.

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