title: prelim, title search/legal title opinion & title insurance

Although not new to Mexico, Title Insurance is now available to the millions of property buyers and owners in Mexico.  Our focus is on making Title Policies available to the foreign investors in Mexico; however, we look forward to helping Mexican Nationals see the value and benefit of Title Insurance in their real estate transactions.

Title Insurance exists to "Insure" the buyer, or lender against Title related defects when they purchase real property.  Yes, the Mexican system of transferring property is a very good one, however, problems can exist which are impossible to see during the closing process.  In the United States, where there is also a very good system of recording transactions, Title Insurance is used on almost every transaction, often times to insure the lender.  Many buyers are lead to believe that because they are getting a bank trust or because they use a "Notario" to finalize the transaction that there cannot be any problems with the title.  This concept is incorrect. The Notario's job is to do his/her due diligence to verify that all of the documents that are presented at the time of the closing are accurate. If one of the parties has committed fraud in the transaction then the Notario would not have any way of knowing this so they would not be liable in the transaction.  In that case, an Insurance Policy would cover the insured party up to the amount of the policy. Typically, the Title Company will defend the insured at their own expense and if they are not able to win a favorable result for their client, they will pay the amount of the damage up to the full amount listed on their policy.

Another mistake made by Buyers in Mexico, is thinking that because they are purchasing on a property that has a Master Title Policy, they do not need to purchase their own individual policy. This is a huge mistake. The Master Title Policy only insures the developer and does not insure the new buyers in any way. If a developer has a Master Policy on their project, ask to take a look at it and take the time to read it.  Every insurance policy is different and pay special attention to any items that are excluded from the coverage.  Also be aware that a Title Insurance policy protects against defects from the past so anything that happens to the property after the policy date would not be covered.  This could include items such as construction liens or non-payment of social security of the construction workers.  Failure to pay these items could result in future liens being placed on the land so as a new buyer don’t think because there is a master title policy in place that it guarantees you that you are OK.  Instead, after you have read through the policy to understand the items not covered, you will know that the developer was able to satisfy all of the other items with the Insurance Company.  

First Title Services does not issue Title Insurance; instead, our attorneys work to provide the legal title opinions which the insurance companies will base their underwriting decisions.  We have performed more title insurance investigations than any other company in Baja California.  That experience gives us the knowledge to properly advise our clients on any underlying issues that may exist on the property.  FTS researches which company offers the best policies at the best prices and with the best service and this is the company that we will recommend to our customers.  As with all of our services, we will take care of all of the details so that our clients obtain their individual Title Insurance Policy.

We have the experience that you are looking for and have the ability to explain what we find in a way that will make sense to you.  Call our office today to start your process.  760-230-0229