Title Insurance in Mexico?
By Mitch Creekmore


Why title insurance?

Title insurance on Mexican real estate is more than just a title insurance policy. It is an in-depth examination concerning title documents, and real estate closing process. In order to issue an Owner's Policy of Title Insurance , and assume the inherent monetary liability that comes with the policy issuance, the insuring company must be as certain as possible regarding all of the various elements in the property transfer.

The process of the title insurance company, is to eliminate risk by examining all of the relevant issues today. If given the opportunity, a title insurance company may both buyer and seller of the relevant concerns that may be outstanding or in process prior to the consummation of the property conveyance.

This type of investigation coupled with financial indemnification gives the non-Mexican purchaser of real estate comfort and security knowing that a company with over 100 years of expertise has examined all of the title matters and issues a title policy. When compared to the other closing costs associated with real property conveyances in Mexico , i.e., transfer taxes and notary fees, an Owner's Policy of Title Insurance will for the most part be the cheapest.

What about the notario publico?

It is often said that it is the responsibility of the notario to provide title assurance, and that they have the same requirement of certification as would a title insurance company. That is true. However, it is not often understood that in Mexico a title policy not only protects against liens, encumbrances, and tax issues, but also against fraud, misrepresentation, impersonation, secret marriages, incapacity of parties, undisclosed heirs and other hidden risk as provided by the policy. Even the best of notarios or attorneys may be unable to discover these title problems.*

What additional benefits does a title policy provide?

Since title policies are fully negotiable contracts of indemnity, a title company can consider and insure a variety of title matters for the benefit of the proposed insured. For example a title insurance policy has the ability to provide affirmative coverage and endorsements that protect purchasers against risks that may be discovered in the title search process. How can any one individual, even a notario publico, give these types of assurances that have real dollars standing behind the assurance and that ultimately will protect a buyer in the event of a loss.


*Subject to certain limits as provided in the policy.

Mitch Creekmore is Business Development Director at Stewart Title Guaranty de Mexico, S.A.
de C.V. on 1990 Post Oak Boulevard, Houston, Texas 77056
Tel: 713-625-8753, Fax: 713-629-2321, mcreekmo@stewart.com

Welcome to Stewart Title Riviera Maya. If you need any additional information, or wish to contact us, please do so at:

Ivan Castillo Lasso
General Manager
Stewart Title Riviera Maya.
icastillo@stewartrm.com


Victor Mancilla B.
vmancilla@stewartrm.com
Legal Manager.
Stewart Title Riviera Maya.


Av. Constituyentes, Esq. 10a. Av. Local 2, Plaza del Karma, Playa del Carmen, Quintana Roo. México
(52-984) 879 43 87/88 Fax. 879-4345
www.stewartrm.com
www.stewarttitlelatinamerica.com