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.
Due to the many rights, claims,
interests, and encumbrances that the law recognizes in real property,
it is essential for the buyer to have a title search and examination
performed before the purchase is consummated in order to identify precisely
the nature of the title the seller can legally convey and the rights
and interests of all other parties in the particular piece of property.
Title policies offer the only protection available against latent defects
of title which do not appear of record such as forgery, impersonation,
capacity of the parties, faulty acknowledgments, and inchoate mechanic’s
and materialmen’s liens.
Currently, American title
insurance is available only for foreign investors. The benefit of American
title insurance for your Mexican real property is that your rights are
enforceable in the U.S. against a U.S. company. Before acquiring any
title insurance, it is recommended that you read the policy and determine
the exact coverage's afforded.
