To avoid real estate scams in the United States, title insurance must be purchased. In Mexico, the same benefits apply. It is very important to obtain title insurance when purchasing any Mexican property.
Investors have been pouring bilions of dollars into Mexican real estate- homes, hotels and resorts. A fraction of these projects have run into problems and delays.
Without title insurance, those investors would not be protected under Mexican law. It is well worth the $500 to $3,500 USD dollars per title examined.
An ALTA format policy issued in the US, according to US law and jurisdiction. If any claim arises from title, it will be handled in the US courts.
Q: What is the procedure for obtaining Title Insurance for properties in Mexico?
A: There are several steps involved in obtaining title insurance when purchasing property in Mexico:
Q: What does the title company need to begin the title report?
A: The title company requires that all fees be paid in advance and a copy of the seller's title.
Q: How long does it take to receive the Preliminary Title Report?
A: Between 7 - 20 working days depending on title conditions.
Q: How long does it take to receive the Commitment for Title from the insurance company?
A: Two days after receiving the Preliminary Title Report 5.
Q: What is the cost of the Title Insurance Policy?
A: Title search fees may vary depending on title conditions and location. These fees can be from $500 to $3,500 USD dollars per title examined.
A: An ALTA format policy issued in the USA according to US law and jurisdiction. If any claim should arise from title, any and all claims will be handled in the USA Courts.
Q: What does the Title Insurance Policy cover?
A: Title Insurance Coverage for property in Mexico includes the following:
Q: When does the buyer receive the Title Insurance Policy?
A: After title is recorded in the local Mexico Public Registry of Property recording office where the property is located.
Q: Can the Title Insurance Policy be transferred to future buyers?
A: No. The policy covers the current buyer's title; any new title has to be insured again with a new policy.
Q: When does the buyer pay the premium?
A: On the day of the closing.
Q: How often do I pay premium on my Title Insurance Policy?
A: One time payment and is valid until transfer of title to a new buyer.
Q: Does the buyer need to be present at closing?
A: No. The buyer can appoint whomever they like through a power of attorney.
Q: What is the benefit when a developer has a Master Title Commitment (MTC)?
A: The primary benefit is that a title search is performed on the first property/unit or sale of the development and that title report is used for the remaining properties/units, reducing the title search cost and title search time. The buyer can then move directly to obtaining a title commitment and the closing.
Q: What other things besides chain of title does the PTR include?
Q: Does the title company provide escrow service?
A: Yes. Mexico Escrow services are provided through title insurance companies in the USA. A flat fee is charged (an average $700 per transaction) and the amount may vary on Escrow Agreement conditions. All monies are transferred to bank accounts in the USA, and the escrow agreement will vary depending on particulars.
Copyright 2006 by GainClients, Inc.
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