In Mexico title insurance is optional but it is an important contract and is widely seen as a sensible idea.
insurance can be purchased at the time of closing on a property or after and
there are two types: title insurance available on the land (US Style) and title
insurance available on just the Fideicomiso (Bank Trust).
insurance will protect you against any other previously unforeseen liens,
judgements or legal problems that are brought against the property before you
took possession of the title deed. This is especially relevant if your purchase
was once ejido owned land and it also
ensures the ownership rights held by fideicomiso.
A title insurance policy
will cover problems that may arise from a discovery on the public records or any
non-recorded defects that are not held or discovered in public records. It
protects the insured for as long as they have an interest in the property, but
it will also protect their heirs and devisees for as long as they hold title to
There are three steps to obtaining Mexico title insurance,
firstly a title company reviews the legal state of the property, secondly, the
seller signs over the title with a notary (notario publico) and thirdly, the Registro Publico de la Propiedad - recording
office - records transfers of title, liens, claims etc on the property and
investigates the accuracy of the seller’s claim.
If the office verifies
the title to be legally sellable, the notario receives the certified assurance that
there are no debts or hindrances on the property and the purchaser officially
becomes holder of the title. This procedure is taken very seriously in Mexico in
that the notario could be held civilly
and criminally liable.
Title insurance is an affordable contract to have
normally, it usually runs about $5 to $8 for every $1, 000 of property value.
With Mexico title insurance on offer from reputable companies such as Stewart
Title Insurance, First American and Fidelity National Finance you are sure to
find a completive quote. But be sure to read the policy and the type of
insurance the company are offering and determine the exact