Issue #
June 2007

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Ability of Good Faith Purchasers to Take Precedence Over Community Property Rights

June 23, 2007

The various civil codes of Mexico´s states provide that in the case of a marriage entered into under the community property marital regime, ownership ofall assets lies with both spouses. However, this principle has exceptions as set forth in the matrimonial agreement entered into by the married partiesand, according to applicable civil code sections; for example, it is common that the goods acquired prior to entering into the marriage, and thosereceived from a family member by donation or inheritance, do not form part of the marital property estate. With that said, Mexican courts haveconstantly debated whether or not a community property estate may take precedence over a third party purchasers in good faith. Such a situation couldoccur when only one of the two spouses appeared as owner of real property as recorded in the Public Registry of Property. In this regard, Mexican courtjurisprudence recognizes that in the sense the community property estate may be opposed against liens or encumbrances on the common assets, even ifit is not registered in the Public Registry of Property. The current trend provides that a real property right acquired by a third party in good faith takesprecedence over the lien or encumbrance relating to the property when such real property is not registered in the corresponding Public Registry ofProperty. The predominating view looks to protect the property rights of the acquiring good faith purchaser, which brings up the point of alwaysverifying the marital property regime of the seller and requiring the spouse to appear when the property is considered to form part of the communityproperty marital estate.

Social Security Issues – Recent Judicial Decision

June 23, 2007

The Mexican Social Security Institute ("IMSS") is not authorized to register, on its own authority and unilaterally, workers who are not registered bytheir employer. In this way, if the IMSS carries out an inspection visit to the employer, resulting in the discovery of workers who have not beenpreviously registered by the employer, the IMSS and its inspectors are obligated to obtain the facts and notify the employer within thirty (30) calendardays after the inspection visit whether all the employer's employees are registered, which decision must be well founded and documented, in the absenceof which the employer may be sanctioned according to applicable law.

New Draft Rules for Implementing Portability Measures for Fixed Base and Cellular Telephone Numbers

June 23, 2007

The Mexican Department of Communication and Transportation (SCT), through the Federal Telecommunications Commission (COFETEL) submittedto the Federal Regulatory Improvements Commission (COFEMER) a new version of its pre-draft called "Resolution by which the Authority of theFederal Telecommunications Commission Establishes Rules For the Implementation of Portability of (Telephone) Geographic and Non-GeographicNumbers." The numerical portability provisions refer to the possibility that telephone service users may keep their telephone number without takinginto account the Federal Public Telecommunication Services provider, in such a manner to be able to freely change telephone services provider withoutchanging their telephone number. It is expected that within the next several days new rules for implementing the numerical portability measures, and atimetable for implementation through a new draft could possibly take place in November, 2007.

Amendments to Mexican Foreign Commerce Regulations

June 23, 2007

On June 1st , important amendments to Mexico´s Regulations and Criteria of a General Nature in Foreign Commerce matters were published. The mostsignificant amendments included the following: (i) multiple companies could be located at the same domicile, whether (a) consisting of two or morecompanies authorized to operate under the decree for the development of manufacturing, maquiladora and exportation industry; or (b) oneor more companies with an IMMEX program, along with companies or individuals who do not have such a program, so long as such parties legallypossess the real property where the domiciles are located and the domiciles themselves are physically marked off in order to show the independence ofeach office; and (ii) articles imported under PROSEC (Sectorial Promotional Program) may transact operations with one or more customs entries(“remesas”) or through one or more ports of entry.