Mexico City deputy proposes law against property dispossession; tax payments won't prove ownership

A local deputy from Mexico's National Action Party (PAN), Mario Sánchez, has introduced a legislative initiative designed to combat the crime of property dispossession in Mexico City. The proposal seeks to establish stronger preventive measures and coordinated efforts against illegal seizures of property. Key reforms target the Civil Code, Fiscal Code, Law of Notaries, and the Law on Real Estate Services. One significant change aims to clarify that paying property taxes or appearing on a tax account does not constitute legal title or transfer ownership of a property. The initiative also mandates visible warnings and notifications for changes in account data associated with properties, without automatically suspending fiscal management. Furthermore, the proposed legislation introduces tiered due diligence requirements for notaries based on the risk level of real estate transactions. Basic diligence would apply to rentals and administration, ordinary diligence to sales and exchanges, and reinforced diligence for complex cases involving powers of attorney, inheritances, auctions, litigation, or discrepancies in documentation. The deputy emphasized that the reforms aim to prevent illicitly obtained property possession from being legitimized over time, stop tax receipts from being used as conclusive proof of ownership, and ensure notaries conduct thorough, risk-proportional verifications. Special attention is given to protecting older adults, people with disabilities, and those residing outside the city through adjusted communication protocols, without making these conditions inherently suspicious.