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Arrecifes Plaza, Suite 6
San Carlos, Sonora 85506
Mexico

480-626-1064 (US & Canada)
622-226-1221 (Mexico)

info@century21marina.com



Independently Owned and Operated and Serving Our San Carlos Clients since 1997
Members - AMPI San Carlos - San Carlos MLS

Up | Financing | Title Insurance

Real Estate Title (RET)

Individual policies may be issued through the office of First American and Fidelity Title's designated representative in Hermosillo, Attorney Alvaro Villagran. As youíll see below, Attorney Villagranís scope of services extend well beyond the issuance of title insurance.

About RET

At RET you will find all the assistance you need throughout the process of acquiring property in Mexico. RET has the most experienced and skilled Closing Services Department to help Mexican nationals and foreign investors navigate the nuances of purchasing real estate abroad. RET provides the only ďone stop shopĒ service in Mexico.

Services Offered by RET:

Legal Counsel

Legal advise and counsel on all issues pertaining to purchase and sale or investment transactions is at your disposal. Verification of all law requirements and proper procedures is one of our main objectives.

Tax Advice

In the process of acquiring a parcel of land, there are several tax payments obligated to both seller and buyer. Our expert attorneys and CPAís offer experience and knowledge of the Tax Law in Mexico to reduce the impact on your investment.

Trust Incorporation

Trust Agreements are the most common way for foreigners to acquire property, since Mexican Law establishes restrictions on land ownership (land next to the ocean and borders). At RET we have developed a friendly and professional relationship with most of the Banks offering the Trust (Fideicomiso) service, which gives us a better platform to negotiate and accelerate the process of getting a trust agreement. As your trust coordinators, we will get in touch with your bank, revise the documents you need, coordinate the documents needed by the Notary Public, verify that the appraisal of your property has accomplished all the necessary requirements, and supervise the tax payments and the deed of trust recording process. By becoming your representative in the trust agreement, we take responsibility for obtaining your new property title.

Mexican Corporations

Another option to acquire property in Mexico is to incorporate a Mexican corporation. This can be highly recommended when the property is not going to be used as a home or residence but instead for commercial or development purposes. This way, you donít have to bother to administrate your property with Banks through a trust, since the Mexican corporation becomes the property owner. There are 6 different types of corporations recognized by Mexican Law. Our job is to determine which option is most suitable to fit your needs and complete all the paperwork to incorporate the company and maintain it in good standing for all legal purposes.

Representing buyer or seller at closing

When all negotiations have taken place and you have settled a date for the closing, you can count on us to represent you in that important moment. Your RET attorney can sign the legal documents for you with a power of attorney granted on their behalf, or will, assist you on verifying that all the terms of the contracts are as previously agreed upon. Furthermore, they will give you legal advise if issues arrive at closing. Closing is the shortest moment in the purchase process but the most important.

Immigration Permits

As a company devoted to facilitating all services needed to our clients, RET provides the know how and assistance to our foreign customers to obtain personal immigration visas, such as permits to do business in Mexico, permits for investors and businessman, authorization to reside permanently in Mexico and authorization to get married to a Mexican citizen among others.

Title Reports

RET is an authorized agent for Fidelity National Title and First American Title, the two leading title insurance Companies in the USA. RET provides the Title companies with legal opinions and title searches regarding property located in Mexico so that they can insure foreign investments. We write a legal opinion every time a property is going to be insured and provide both the buyer and the insurance company with all the information concerning the property.

Title Insurance provides you certainty as to the identity of the legal owner of the property, identification of all existing financing recorded against the property, identification of all easements, private restrictions and other encumbrances recorded against the property and indemnification against loss and/or indemnification as to the cost of defense against adverse claims.


 

Title Insurance in Mexico

Frequently Asked Questions for Investors

What is the procedure to obtain title insurance?

To obtain title insurance, the client delivers a copy of the title to Real Estate Title (RET) and pays expenses for the title research in advance. Once the title research has been performed, RET will deliver an opinion to the title insurance company. If all is according to both local and federal laws, the title insurance company will issue a commitment letter. All paperwork will then be taken to the chosen Notary Republic, to solidify the sales contract. All parties involved then sign the contract and exchange money, including premium costs for Fidelity. The title insurance policy is delivered after the Notary Republic has registered the title in the Public Registry of Property Recording office in the county where the property is located.

What is the cost on title search fees?

Title search fees may vary depending on title conditions and location. It could range from $500 USD to $3500 USD per title examined. Package costs can be negotiated.

What is the premium cost on title insurance?

Premium policy prices may vary depending on title conditions. For commercial property, $5 USD per every $1000 dollar invested is commonly charged. For residential property $7 per thousand invested is charged. Premium costs can be negotiated for high profile transactions.

Does RET provide escrow services?

RET provides escrow services through the title insurance companies located in the USA. A flat fee is charged on average of $700 per transaction, but may vary due to escrow agreement conditions. All money is transferred to bank accounts in the United States. The escrow agreement will vary depending on particulars but a standard format can be sent to investors to review.

Can title insurance cover less than the real value of property?

Yes. The Title insurance company will insure the declared value of the property or less. Restrictions do apply when the property value is less than the declared value.

Can the amount insured be higher than the real property value?

Yes, but restrictions do apply. The Title insurance company will only cover the real value of the property at the time risk occurs. If construction is built on the property, which increases the real value of it, the insurance policy can be upgraded to cover it.

What matters does the insurance policy cover?

Benefits include the following:

-Assurance as to the identity of the legal owner of the property.
-Identification of all existing financing recorded against the property.
-Identification of all easements, private restrictions and other encumbrances recorded against the property.
-Assurance as to the existence of legal right of access to the property.
-Assurance to a lender that it has a valid and legally enforceable security interest in the property.
-Indemnification against loss based on covered matters.
-Indemnification as to the cost of defense against adverse claims based on covered matters.

How long does it take to have the preliminary title report?

It takes between 7 to 20 working days to get the preliminary title report depending on title positions.

How long does it take to have the title commitment from the insurance company?

It takes two days after receiving the PTR to get the title commitment.

When does the purchaser receive the policy?

After the title is recorded in the local Public Registry of Property Recording Office where the property is located, the purchaser receives the policy.

When does the purchaser pay the premium?

The purchaser is responsible for paying the premium after the closing.

What kind of policy do you offer?

The title policy offered is an ALTA format policy issued in the USA according to US law and jurisdiction. If any claim should arise, it will be handled in the USA court system.

In the event of an attack on the title, whom does the purchase contact?

The purchaser should contact the real estate title company or the title insurance company claims office in the USA directly, in the event of an attack on the title.

Can the title policy be transferred to future buyers?

The title policy canít be transferred. The policy covers the purchaser title, so any new title has to be insured again with a new policy.

What benefits exist when the developer has a Master Title Commitment (MTC)?

There are several benefits of having a MTC. To begin with, there is no need to do a title report since the title has already been searched. This reduces the title search cost and saves time. Buyers from a developer with a MTC only need to pay an update fee, which averages $500 USD. Then the buyer can move directly to getting a title commitment and close on the property.

How often do I pay a premium on my title policy?

The premium is paid one time and is valid until transfer of title to a new buyer.

What happens when I am buying a property through a Mexican corporation?

When buying property through a Mexican corporation, the stockholders individual amount of the investment is what is insured.

Does the purchaser need to be present at the closing?

The purchaser does not need to be present at the closing. Instead, they can appoint anybody to represent them through a power of attorney. The Real Estate Title company can provide the service for the purchaser.

What services can The Real Estate Title Company provide besides title search and insurance?

- Legal counsel
- Tax advise
- Incorporation of Mexican companies
- Trust incorporation
- Representation of investors at closing
- Escrow accounts
- Immigration permits
- Contracts and agreements

What other things besides chain of title does the PTR include?

- Zoning
- Federal zone concessions. The federal zone consists of an area of twenty meters from the highest tide inland. In Mexico, the federal zone can be a concession to individuals, including foreigners, in order to have a private beach and to access control. This mechanism brings added value to beach property.
- Utility services are paid, like water and public services.
- Homeowners or developer fees that might affect the property according to CC&Rís.
- Lease agreements affecting the property.
- Eijido or agrarian regime affected property.

What does the Real Estate Title company need to begin a title report?

- Fees paid in advance.
- A copy of the sellerís title.