Title Insurance
Title Insurance is not required in Mexico but, it is very strongly
recommended. The policy is a “contract of indemnity” that
guarantees a purchasers ownership rights and lien interest as established
in the public deed (escritura publica). This policy insures the
purchaser against any loss suffered by a defect or cloud on the
title.
The policy is the only guarantee that any buyer or lender can receive that protects their rights of ownership or lien priority as recorded in the Mexican public registry of property and commerce.
A title insurance policy is a contract of indemnity that promises to pay for a loss up to the face amount of the policy if the state of the title is different than it is set out in the policy and the insured suffers a loss as a result of the difference.
A title insurance policy will cover both claims arising out of title problems that could have been discovered in the public records, and those so called non-record defects that could not be discovered in the public records even with the most complete title search.
A title insurance policy will not only protect 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.
A title policy insures against loss by reason of matters specifically stated or covered in the policy. Purchasers of real estate run the risk of serious financial loss in connection with the title to the property purchased. The seller may lack title to the property because of a problem in the chain of title or may not own all of the interest in the property he purports to convey.
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