Although title insurance is not required in order to purchase property in Mexico, it is highly recommended. Many people are under the impression that a fideicomiso (bank trust) will protect their title. This is not true. The fideicomiso acts as a fiduciary, but it does not protect the title. The piece of mind that you will get by knowing that you own your property has a clear title is well worth the price. Even if you do not purchase title insurance when you first purchase your property, you can still purchase a title insurance policy at any time. Title insurance companies may be able to find descrepancies or other issues that your notary or lawyer may not be able to find. If you are going to finance your property in Mexico, a title insurance policy is required by most lenders.
Stewart Title and First American Title both have a strong presence in Mexico and their experts can help you with your title insurance policy. As foreign investment in Mexican real estate becomes more and more common, we can expect to see the entry of other title companies into the Mexican market.
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Title insurance is a special type of insurance that protects the expatriate community in México from loss on a specific piece of property. A Title Insurance Policy provides security against the loss of land as a result of a title problem. Title Insurance can be purchased with or without limitations and exclusions. When purchasing property in the United States, most Banks and Mortgage companies require Title Insurance prior to granting a loan. Some title insurance companies insure only the Fideicomiso (Living Trust) and exclude fraud, government and Ejido claims, even certain developer liens. This should not be acceptable. When purchasing title insurance in México make sure that the policy is on the land not just the Fideicomiso. Buying a home anywhere is one of the most important decisions anyone makes and now that title insurance is available in México, people can have a lot more confidence in purchasing a home or a condominium.
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