3-4/2005 UINL - Notarius International

3-4/2005 UINL - Notarius International 3-4/2005 UINL - Notarius International

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202 J. A. Márquez González, National Report Mexico Notarius International 3-4/2005 - Proof of facts and accreditation of rights; - Accreditation of residence, good conduct or financial dependence; - Verification of possession of a real right; - Voluntary change of name; - Voluntary procedure for survey and demarcation; - Voluntary creation and cancellation of family property; - Voluntary liquidation of property held jointly by spouses; - Voluntary creation and amendment of marriage contracts; - Testate or intestate succession, and - Unanimous waiver and appointment of executor (article 699-A of the Code of Civil Procedure of Veracruz). 1.6. Procedure for execution 1.6.1. Execution Articles 100-142 of the Notary Law describe in detail the procedure for notarial execution. Thus, deeds must be issued on indelible media with no abbreviations, except in the case of transcripts. No numbers must be written unless they are also stated in words and unused space must be crossed through. Corrections may be made using the method of writing between the lines, indicating the incorrect expression by means of a line, but in any case finally saving what is corrected. Changes and crossings out are strictly prohibited. The notary must draft deeds in Spanish, although in exceptional circumstances he may enter words in another language. He must state the place and the date, the full names of the appearers and the legal name of the act. He must also carefully record the antecedents, listing the respective titles of ownership, as appropriate, the registration particulars and the necessary administrative and tax documents. Likewise, he must describe the property or subject-matter of the business, as appropriate, in detail, list the powers or authorities for representation, draft in order the clauses agreed by the signatories and any waivers of rights. He must attach any documents that he deems important to the appendix and he must certify and attest that he knows the signatories (stating their general particulars), that he has assured himself of their identity, that he read the deed out to them and that he explained its legal scope to them. He must also certify the facts placed before him. He must do all this in clear, concise, precise legal language, with no obsolete or antiquated words or formulae. At the end of the deed, the notary must obtain the signatures or marks of the signatories and appearers and witness the deed with his signature, his stamp and the expression “Ante mí” (Before me). 1.6.2. Open or closed record When a document has been drafted, it is issued on folios or in books authorised by the local government, either in the form of an “open” record or a “closed” record. The folios making up the “open” record have a consecutive identification number and are subject to documentary security procedures consisting of watermarks or other distinctive marks. There is currently a decisive movement towards legislative reform in favour of “open” records. A total of 21 federal states now contemplate these records in their legislation as being either obligatory or optional and 11 states do not, although we should point out that 4 of them possess the record known as the “special open” record for executing deeds for immovable properties of “social interest” which other federal states have abolished, precisely to introduce the “open” protocol in a generalised manner. Interested parties have the right to obtain transcripts, certified reproductions and certificates of the document from the notary of either the full document or part thereof, provided that no damage ensues in this latter case. The transcripts executed by notaries are subject to security procedures on one cover, which identifies the notary, the number of his notary public's office, the respective jurisdiction and the local government to which it belongs. It is also common for the cover to show the notary's private logotype or letterhead. In turn, it is mandatory for the printed sheets of transcripts to bear the seal and the signature or paraph of the notary and, in some cases, the respective kinegram. 3 1.6.3. Public documents Public documents are documents that a public official who has been granted the authority to attest documents is authorised by law to draft, within the limit of his powers. Public documents are also those documents issued by public officials when discharging their duties. The classification of public is shown by the fact the document bears regular stamps, signatures or other external signs provided by law, as appropriate (article 129 of the Federal Code of Civil Procedure). 1.7. Notaries' tariffs There is no applicable general system of notaries' tariffs. In fact, such a system is established in few federal states, including the Federal District and Veracruz. It may be that in other states it is provided by law and although it has actually been issued, in practice it is meaningless either due to its age or because of the complexity of its application or because it is out of date due to the recent financial inflation in Mexico. 1.8. Professional organisations Most of the notarial laws in the Republic of Mexico contemplate an association as an institution that obligatorily groups together all the notaries in the federal state. From a national perspective, the association known as the Asociación Nacional del Notariado Mexicano (ANNM) 4 (National Association of Mexican Notaries) was founded in 1955. All of the notariates in the country 3 The new notarial laws of Veracruz, Tabasco and Nayarit already require the use of the kinegram (article 136 of the Veracruz notarial law) or hologram (article 40 of the Tabasco notarial law and article 148 of the Nayarit notarial law).

Notarius International 3-4/2005 J. A. Márquez González, National Report Mexico 203 are voluntarily affiliated to this body and it also includes, in accordance with its statutes, the Presidents of the local notarial Associations and Councils throughout the country, which means that it is highly representative at a national level, although it is true that not all notaries are affiliated to it. 2. Civil Law 2.1. Civil law in general The Código Civil del Distrito Federal (CCDF) [Civil Code of the Federal District (CCFD)] has been in force since 1932 and has been subject to considerable changes in recent years. It continues to be profoundly influenced by the Napoleonic code of 1804 and is, in general, structured in quite a similar way. All the codes in the Republic are very similar, but that does not mean that there are no differences between them. Some of those differences are quite significant. For example, most of the codes contemplate the doctrine of “legal act”. In fact, articles 1792, 1973 and 1859 of the CCFD contain the definitions of agreement and contract, obeying in this regard the French theory enshrined in the Code of Napoleon. Nevertheless, some codes differ from this system of doctrine. This is the case with the civil codes of Quintana Roo (articles 135-425), Coahuila (articles 1899-2198) and Guerrero (articles 1593 et seqq.), which adhere to the theory of “legal business”. The oldest civil codes in the country are those of Veracruz (1932), Nuevo León (1935), Michoacán (1936), Chiapas (1938), Hidalgo and Sinaloa (1940), Campeche and Oaxaca (1943), San Luis Potosí (1946), Aguascalientes (1947), Durango (1948), Sonora (1949), Colima (1953), Guanajuato (1967), Baja California and Chihuahua (1974) and Tlaxcala (1976). The newest are those of Quintana Roo (1980), Nayarit (1981), Puebla (1985), Zacatecas (1986), Tamaulipas (1987), Querétaro (1990), Guerrero and Yucatán (1993), Morelos (1994), Jalisco (1995), Baja California Sur (1996), Tabasco (1997), Coahuila (1999) and, finally, Estado de México (2002). 2.2. Property law Book Two of the CCFD deals extensively with possession, ownership, usufruct, use, habitation and easement and is not until the Second Part (Various types of contract) of Book Four (Obligations) that it examines the alienation of immovable property in each of the specific contracts in question. In our law, the contract of purchase and sale is consensual. In fact, in accordance with the provision contained in article 2248, “A purchase and sale will exist when one of the parties to the contract agrees to transfer the ownership of a thing or a right and the other party, in turn, agrees to pay a certain price for them in money”. In general, the sale is perfected when the parties have agreed on the considerations, even though these may not yet have been physically delivered. 2.3. Alienation of immovable property 2.3.1. Requirements in terms of form A contract of purchase and sale is required to adopt a certain specific form when it deals with real estate properties. The CCFD provides that alienations up to the value of 365 times the minimum general daily salary of Mexico City (approximately $ 16,100 pesos, equivalent to approximately USD 1,500) may be carried out in a private document before two witnesses, with the signatures being confirmed before a notary, a judge or a registrar. This is also the case with operations of creation of transfer of real rights for the same sum. Contracts relating to alienations carried out by the government for poor people may, on the other hand, dispense with the witnesses and the certification of signatures. It should be clarified that these social-interest contracts are almost always granted a 50% reduction of the tariff. All contracts that exceed that amount of USD 1,500 must be executed in a public deed before a notary. 2.3.2. Execution in a public deed To sum up, the procedure for executing a public deed may be summarised as follows: - First, the notary is obliged to obtain a certificate from the public registry office relating to the existence or otherwise of encumbrances in connection with the property to which the transfer relates. - This request also serves as a preventive notice in which the disclosed transaction is mentioned. The registrar issues a note of submission, which is valid for 30 calendar days. - When the deed has been signed, another preventive notice is issued by the notary, but now with the addition of the date of the deed and its signature. - The notary must then continue with the procedure of payment of fees and taxes relating to the transaction in question and when they have all been paid, he must issue the respective transcript for its final entry on the public register. 2.3.3. Entry on the register The institution of registration operates according to the principles of public recording, entry, speciality, consent, successive intervals, request, priority, legality and presumption of accuracy of the register. Article 3042 of the CCFD states that the following acts must be registered: - Titles whereby dominion, original possession and other real rights on immovable property are created, declared, recognised, acquired, transferred, amended, restricted, encumbered or extinguished; - The creation of family property; - Contracts for lease of immovable property for a period of over six years and leases in which more than three years' rent is paid in advance; and 4 Internet: www.notariadomexicano.org.mx/

202 J. A. Márquez González, National Report Mexico <strong>Notarius</strong> <strong>International</strong> 3-4/<strong>2005</strong><br />

- Proof of facts and accreditation of rights;<br />

- Accreditation of residence, good conduct or financial<br />

dependence;<br />

- Verification of possession of a real right;<br />

- Voluntary change of name;<br />

- Voluntary procedure for survey and demarcation;<br />

- Voluntary creation and cancellation of family property;<br />

- Voluntary liquidation of property held jointly by spouses;<br />

- Voluntary creation and amendment of marriage contracts;<br />

- Testate or intestate succession, and<br />

- Unanimous waiver and appointment of executor (article<br />

699-A of the Code of Civil Procedure of Veracruz).<br />

1.6. Procedure for execution<br />

1.6.1. Execution<br />

Articles 100-142 of the Notary Law describe in detail<br />

the procedure for notarial execution. Thus, deeds must be<br />

issued on indelible media with no abbreviations, except<br />

in the case of transcripts. No numbers must be written unless<br />

they are also stated in words and unused space must<br />

be crossed through. Corrections may be made using the<br />

method of writing between the lines, indicating the incorrect<br />

expression by means of a line, but in any case finally<br />

saving what is corrected. Changes and crossings out<br />

are strictly prohibited.<br />

The notary must draft deeds in Spanish, although in<br />

exceptional circumstances he may enter words in another<br />

language. He must state the place and the date, the full<br />

names of the appearers and the legal name of the act. He<br />

must also carefully record the antecedents, listing the respective<br />

titles of ownership, as appropriate, the registration<br />

particulars and the necessary administrative and tax<br />

documents. Likewise, he must describe the property or<br />

subject-matter of the business, as appropriate, in detail,<br />

list the powers or authorities for representation, draft in<br />

order the clauses agreed by the signatories and any waivers<br />

of rights. He must attach any documents that he<br />

deems important to the appendix and he must certify and<br />

attest that he knows the signatories (stating their general<br />

particulars), that he has assured himself of their identity,<br />

that he read the deed out to them and that he explained<br />

its legal scope to them. He must also certify the facts<br />

placed before him. He must do all this in clear, concise,<br />

precise legal language, with no obsolete or antiquated<br />

words or formulae. At the end of the deed, the notary<br />

must obtain the signatures or marks of the signatories and<br />

appearers and witness the deed with his signature, his<br />

stamp and the expression “Ante mí” (Before me).<br />

1.6.2. Open or closed record<br />

When a document has been drafted, it is issued on folios<br />

or in books authorised by the local government, either<br />

in the form of an “open” record or a “closed” record.<br />

The folios making up the “open” record have a consecutive<br />

identification number and are subject to documentary<br />

security procedures consisting of watermarks or other<br />

distinctive marks.<br />

There is currently a decisive movement towards legislative<br />

reform in favour of “open” records. A total of 21 federal<br />

states now contemplate these records in their legislation<br />

as being either obligatory or optional and 11 states do<br />

not, although we should point out that 4 of them possess<br />

the record known as the “special open” record for executing<br />

deeds for immovable properties of “social interest”<br />

which other federal states have abolished, precisely to introduce<br />

the “open” protocol in a generalised manner.<br />

Interested parties have the right to obtain transcripts,<br />

certified reproductions and certificates of the document<br />

from the notary of either the full document or part thereof,<br />

provided that no damage ensues in this latter case. The<br />

transcripts executed by notaries are subject to security<br />

procedures on one cover, which identifies the notary, the<br />

number of his notary public's office, the respective jurisdiction<br />

and the local government to which it belongs. It is<br />

also common for the cover to show the notary's private<br />

logotype or letterhead. In turn, it is mandatory for the<br />

printed sheets of transcripts to bear the seal and the signature<br />

or paraph of the notary and, in some cases, the respective<br />

kinegram. 3<br />

1.6.3. Public documents<br />

Public documents are documents that a public official<br />

who has been granted the authority to attest documents is<br />

authorised by law to draft, within the limit of his powers.<br />

Public documents are also those documents issued by<br />

public officials when discharging their duties. The classification<br />

of public is shown by the fact the document bears<br />

regular stamps, signatures or other external signs provided<br />

by law, as appropriate (article 129 of the Federal Code<br />

of Civil Procedure).<br />

1.7. Notaries' tariffs<br />

There is no applicable general system of notaries' tariffs.<br />

In fact, such a system is established in few federal<br />

states, including the Federal District and Veracruz. It may<br />

be that in other states it is provided by law and although<br />

it has actually been issued, in practice it is meaningless<br />

either due to its age or because of the complexity of its<br />

application or because it is out of date due to the recent<br />

financial inflation in Mexico.<br />

1.8. Professional organisations<br />

Most of the notarial laws in the Republic of Mexico<br />

contemplate an association as an institution that obligatorily<br />

groups together all the notaries in the federal state.<br />

From a national perspective, the association known as<br />

the Asociación Nacional del Notariado Mexicano<br />

(ANNM) 4 (National Association of Mexican Notaries)<br />

was founded in 1955. All of the notariates in the country<br />

3 The new notarial laws of Veracruz, Tabasco and Nayarit already require<br />

the use of the kinegram (article 136 of the Veracruz notarial<br />

law) or hologram (article 40 of the Tabasco notarial law and article<br />

148 of the Nayarit notarial law).

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