Two major title insurance companies dominate the real estate market in Puerto Vallarta: Stewart Title Guaranty & Trust out of Houston, Texas and First American Title out of Sunrise, Florida. Both have excellent reputations in the U.S. and are household names when purchasing property there. While the fee structures are different, the systems are essentially the same.
In the event you elect to have title insurance on the property you purchase in Mexico, you will need to provide the escritura (deed) to the property, as well as a certificate of no liens to the title company for review. A full title search will be performed on the property and a title commitment issued. The title commitment will show the items that will need to be addressed in order to actually secure title insurance. There may be declarations of possession, land surveys, property tax receipts, and other documentation that may be required as proof of no adverse possession or liens against the property. Assuming you are issued a clean bill of health from the title company, you will have the same type of title coverage that you would enjoy in the States. Any claims are submitted through the title company and jurisdiction is either Texas in the case of Stewart Title or Florida in the case of First American Title.
Title insurance in Mexico is actually issued AFTER the closing. The necessary documentation required to be included in the title policy directly does not occur until after the closing has taken place and the deed is recorded. However, coverage occurs at the time of payment of the premium, as long as the initial commitment letter has been issued and any outstanding issues have been resolved.
Both companies will also offer simple escrow services to act as a third-party for holding earnest money deposit funds in a real estate transaction in Mexico. The cost for these services is typically $550 USD.
Fees for Stewart Title are approximately $7 USD per $1,000 USD of property value and with First American Title are approximately $5 USD per $1,000 USD of value. Depending on the value of the property, these fees may be negotiable. Additional fees for the title search itself are approximately $1,000-$2,000, again depending on the property, for each company.
