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Real Estate in Mazatlan |
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By Carol Sinclair de Ibarra from Walfre
Real Estate
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Title Insurance
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| In Mexico, the notary public (who is also a lawyer) is responsible to transfer the title of a property from the seller to the buyer. The notary is required by Mexican law to follow a number of steps to complete this process. These steps include verifying the identity of the sellers and the buyers, requesting a certificate from the public registry showing there are no liens, burdens, or encumbrances on the property and a 20 year title search. This is known as “certificado de libertad de gravamen.” The Notary is also required to request an official appraisal of the property, a certificate proving that the local property taxes have been paid and also that services such as water are paid to date. |
| Although not commonly used in Mexico, Title Insurance is available. According to Stewart Title Guaranty of Mexico S.A. de C.V., the procedure to obtain title insurance begins with an application for a title search which has a cost of US $500- $3000. This title search is “over and above” the work done by the notary and therefore is an additional closing cost. If the application is approved, Stewart Title of Mexico S.A. de C.V. will insure the property for the actual investment made. The one time premium for residential property is calculated at the rate of US$8/1000. In conjunction with the Title Insurance, there is an escrow fee of US $500. |
| In my opinion, the benefits of acquiring Title Insurance would be “peace of mind” and the value as a future re-sale tool. The drawbacks would be the additional costs to close the sale and the time frame for a closing which can at times be critical for a seller. Title Insurance is definitely a big advantage for large real estate developers marketing to US and Canadian clients. |
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| For more information please contact at: www.Stewart.com/international |
| Any comments on this or other articles would be appreciated. Please contact me via my e-mail at: sincrose@msn.com |
