In Mexico title insurance is optional but it is an important contract and is widely seen as a sensible idea.

Title 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).

Title 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 the property.

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 coverage.

At Investment Properties Mexico we can help find the best option for your particular needs. Contact us for more information or visit our real estate guides for more on Mexico title insurance.