San Felipe Real Estate, Baja Mexico, Title Insurance

Playa De Oro: Doing Things Right!

Please check out our new Web Site at

Playa De Oro is the First subdivision in the history of Mexico to have Title Insurance on the entire project!

WHAT IS TITLE INSURANCE ALL ABOUT AND IS IT REALLY NECESSARY?

Most Americans would never buy property in the U.S. without purchasing title insurance. Title insurance in Mexico is a relatively new concept, partially because it is tremendously expensive. Also, there has been an ambiguous sense of security reached because a Notorio Publico researches the public record to ensure legal ownership prior to authorizing a sale, whether deeded or Fideicomiso. Combine that with a bank reviewing the current developer's documents thoroughly before issuing a Fideicomiso and the question arises, why do I need title insurance?

In the U.S., a bank also researches the legalities of ownership if a property is mortgaged or financed, and we have our deeds recorded along with any liens in the county registry. Yet, this is not considered adequate assurance of past ownerships or salability in lieu of title insurance. The same holds true in Mexico. While the Notorio Publico and the Bank Trust offer strong protection under the law, they do not offer complete protection or any protection against third party intervention, fraud, or errors and omissions in public records. Mexico has a great registration process. However, as in any process, room for error or fraud exists. Example: as part of the process, the Notario will ask for identification of the registered owner, will witness that the identification matches the person, but does not verify that the identification is free of fraud. Part of the registration process is to register sales, liens, notes, etc. in the public records. These records consist of hand written notes made in the public registry noting every property transaction in Mexico.

The Notorio or an employee of the Notario Publico will check and make recordings in this public register. Humans can and do make mistakes no matter how thorough they are. Regularly there are multiple books in the public registry for every property. These contain margins for what is called a marginal notation that refers the recorder to every major event that could affect any sale on the property (example: a sale or lien in book seven is to be registered in the margin of book one, etc.) One error or omission in any of the books could leave room for litigation. Playa de Oro has title insurance through Grupo Nacional Provincial, S.A. on the entire development and has First American Title Insurance to reinsure and issue individual policies to every owner. This policy guards against anything and everything that could happen to your property. It has no limits on legal expenses, no deductible, and covers the policyholder in the event of fraud, errors and omissions, or third party intervention including Government and Ejido claims. Claims can be made in either Mexico, through Grupo Nacional Provincial or the U.S. through First American Title Insurance Company.

Policy of Title Insurance

Schedule A

Schedule B - Section II

(Click to enlarge above pages)

There are different types of Title Insurance. There is Title Insurance available on the land (US Style) and Title Insurance available on the just the Fideicomiso (Bank Trust). Playa de Oro's title insurance is specifically on the land and not just the Fideicomiso. For example, a Fideicomiso can be dissolved because of fraud. If a Fideicomiso were dissolved because of fraud, First American would still insure, protect and defend your ownership rights in the property. You are unconditionally protected. Home Depot in Mexicali recently purchased title insured through First American Title Insurance Company, the world's largest title insurance company. They felt it necessary and so do we. Playa de Oro proudly provides, to each of its owners, a full coverage policy for the price of the lot at no additional cost. Because of the original policy and costs covered by Playa de Oro, additional and/or updated coverage to insure the value of a home, and even appreciation, can be purchased very reasonably and is a one-time fee. The coverage lasts forever! As we are all aware, anyone can sue anyone. It's no different in Mexico than in the U.S.

In the event of a title issue, First American will not only pay all legal costs but will defend the case with the best possible lawyers in Mexico. (If they should lose the case, they have to pay to the policyholder the policy amount!) They have a total responsibility to protect the policyholder forever. Example: the original owner sells the property and over the years it changes hands several times. A lawsuit is brought naming all owners all the way back to the original owner. In this example, even though the policy the original owner bought became retired with their sale of the property (each new owner must buy their own policy), First American would defend and protect the original owner/policyholder and/or his heirs. The policy protection is literally in effect forever and there is no limit on legal expenses. Because of the foresight of Playa de Oro, even the buyer's view of the Sea of Cortez, the largest protected whale sanctuary in the world, is insured. How can this be done? The CC&R's have been registered and in them, the clause for height restrictions on homes to protect the views of all properties in Playa de Oro.

Any of these examples demonstrate the value of Title Insurance. Playa de Oro has always felt it to be of utmost importance and believes it has a responsibility to protect the buyer's investment. It is the first development in Baja Mexico to have title insurance on the entire subdivision. Not all title insurance policies and title insurance companies are created equal. There are reasons Playa de Oro has chosen First American Title Insurance Company and, respectively, First American has completed an exhaustive research on Playa de Oro to offer this protection for its owners. To quote a First American representative, "Playa de Oro is one of the cleanest and best properties for sale in Mexico." The multi-billion dollar insurance companies Grupo Nacional Provincial, S.A. and First American Title Insurance Company even against any third party intervention including Government and Ejido claims guarantee your purchase and ownership at Playa de Oro. First American Title is the largest title insurance company with offices worldwide. They are assuming the risk for you that everything is OK.

Please Contact us if you need more information!