Title Insurance Links
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So how do I protect myself by purchasing property in Mexico? Stewart Title has been insuring property in Mexico and has offices that service Cozumel, Quintana Roo.
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Stewart's six (6) reasons for Title Insurance
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Stewart’s six principles help buyers avoid risks.
1. Determine if the seller has legal ownership of
the property and if it can be transferred legally.
2. Hire Mexican counsel or a title insurance
company to search the ownership status
back to the sovereign.
3. Have your legal counsel review the buy/sell
agreement, which usually determines the
transaction’s terms and conditions.
4. Arrange for a title company to handle the
escrow of funds.
5. Obtain a property ownership insurance policy
to protect against recording errors, liens,
encroachments, taxes, fraud, misrepresentation
and other ownership issues.
6. If the property is a condominium, examine
the documents creating the condominium
regime (the regimen de condomínio and the
like), which defines the owners’ rights,
obligations and restrictions |
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Title Insurance Purchasers of Mexican real property can now receive Owner's Policies of Title Insurance that can be issued on both sides of the border from various companies to both U.S. and Mexican buyers. Most title insurance policies today are U.S. contracts of indemnity guaranteeing ownership rights as vested in a fideicomiso (bank trust) for residential property acquired by foreign buyers in the prohibited zone, or for properties held in a Mexican corporation for non-residential purposes (i.e. industrial and commercial). Mexico is not unlike the U.S. in that there is a definitive legal framework for ownership of land by foreigners known as the New Foreign Investment Law (Dec. 28, 1993) and as mandated under Article 27 of the Mexican Constitution. In addition, there is formality and compliance in the development of real property. Regulatory statutes and procedures are mandated on a state-by-state basis and require a series of official approvals, permits, and authorizations, coupled with public disclosure and written notification by the governing public agency. American title Insurance is available for Mexican real estate whether acquired directly or through a trust. The cost of the insurance depends on whether the property you are purchasing is covered by a master title commitment. The best way to protect yourself is to get title insurance. Most Mexican companies don't sell it, but Houston based Stewart title Guaranty, Lawyer's Title, and Fidelity National Financial does. The insurance runs about $4 to $7 for every $1,000 of property value, versus $3 to $4 in most of the U.S. In addition to title insurance, property insurance is also available in Mexico and the rates are relatively low.
Title Insurance One of the most important aspects of protecting a real estate investment is making sure the title to the property is in proper order. Real estate purchases are different from most types of purchases. Instead of purchasing a physical object like a boat or a car, you are purchasing a group of rights, called the title to the property. These rights can be limited by rights and claims asserted by others. A title insurance policy protects your rights. What does a title policy provide?
Payment of legal expenses to defend an insured title from claims* Payment of valid claims up to the value of the policy * Thorough investigation of the title prior to issuance of title policy
Covered title risks include*:
Invalid documents executed under expired/non-existent power False assumption of identity concerning the legitimate property owner Liens and financial burdens charged to the previous property owner Non registered property easements Hidden heirs of previous property owners
Peace of mind A title guaranty is purchased for a one-time fee and once acquired, protects the policy holder as long as there is an interest in the property. |
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