In the past, registration of Real Estate transactions without title insurance did not provide the certainty of title ownership to which U.S. investors, purchasers and lenders are accustomed. Although the Mexican property transfer system is safe, remedies are limited in the event of a title problem.
The first American Mexico Policy of Title Insurance is designed to insure any recognized land interest in Mexico such as direct ownership, leasehold and trust or beneficial ownership (”fideicomiso”) covering commercial and residential properties, including privatized communal farms (”ejidos”), beachfront and border properties (”excluded zones”).
The Mexico Policy insures agains loss from defects in title unknown to the insured prior to the date of the transfer of title or loan that were not otherwise stated in the policy, regardless or whether the loss results from errors in the Public Registry, errors in the search of the Public Registry or any other cause as fraud, mortgages, mechanic’s or tax liens, easements, contractual obligations restricting the uso of the property, adverse possession by a third party, ejidos, forgery and other matters not of record. It also covers access to the land and coverage continues for the duration of time that the insured holds the real property.
