Why is Mexico’s market so strong? There are many reasons:
- It can be attributed to hurricanes in Florida and tsunamis in Indonesia.
- The 9/11 disaster is partly responsible for making people think about their future, about having a vacation home somewhere warm, where they could drive back home if need be.
- The burst of the Internet bubble and crash of the stock markets have people looking for alternative investments.
- The size of the Canadian and U.S. debt, social security issues and an out-of-control trade balance has people concerned about their financial future.
- NAFTA liberalized ownership requirements, opening up the market to non-Mexicans. Mexico has seen—and will continue to see—healthy economic expansion thanks to the North American Free Trade Agreement.
- So far this year, the peso has proven itself to be stable against the U.S. and Canadian dollar.
“Graying gringos are buying into a relaxed lifestyle in Mexico for a fraction of what they'd pay in the US,” reports Caroline Overington, New York correspondent for The Age.
With more than 70 million American baby boomers and almost 10 million Canadian baby boomers expected to retire in the next two decades, it’s the beginning of a “demographic tidal wave. Plus, those 70 million boomers control more than $7 trillion USD in wealth in the U.S.A. alone, and they’re savvier about how they want to spend it.”
By far the most notable change has been the emergence companies offering Title Insurance in Mexico. Stewart Title is the first property insurance company to recognize the growing need to have this product in Mexico and as a result Stewart Title Guadalajara now provides this service in Mexico.
Purchasing a home, whether a primary residence or a vacation home, is usually one of the largest investments made during a lifetime. After closing on such a significant investment, you want to be certain that you are protected from potential loss. The availability of title insurance policies may alleviate any property dispute fears.
Title Insurance – your guarantee to a clean title
A title insurance policy…”provides a financially backed guaranty as to the status of your title”. The financial resources and experience of a Title Insurance Company stand behind you and your property when you acquire this service. The company assumes the responsibility of paying its clients for the losses they may suffer if the rights over the property purchased do not match those specified in the Title Certificate.
As part of the service, the company issuing the insurance carries out a thorough investigation of all documents related to the property, checking its legitimacy and inquiring about liens, encumbrances, mortgages or other restrictions. However, if, after careful examination and purchase of the property, unforeseen problems arise, that is exactly where the coverage of the insurance becomes effective. It may be through the payment of costs and legal fees, if the owner is forced to defend his legitimate right over the property in court, or compensating him for his economic loss because of the hidden risks.
The service is offered to owners and lending institutions financing the purchase. It is a one-time payment is a valid as long as the owner keeps the legitimate rights over the property.
By definition a title insurance policy is a private contract of indemnity between a purchaser or lender and a title guaranty company that protects the holder of the policy from issues that may affect the title to the property, issues like liens, encumbrances, fraud, hidden heirs, improperly executed documents, etc.”
One of the most significant benefits of the title policy is that the title company will undertake to defend and clear any claims that arise after the purchase of the guaranty, including covering the cost of all related legal defense. In the event of a legitimate claim, the title company will pay or settle with the claimant, up to the insured value of the asset…more importantly, you’ll have an advocate who will defend your claim in the local courts.
And, now Stewart Title has come to Lakeside. Stewart Title Guaranty was one of the first companies to recognize the growing need to have this product in Mexico. In that respect its General Director, Gerardo Martínez, says: ‘We have issued owner’s policies and creditor’s policies to large developers, institutions that grant credit and to investors in order to strengthen and give economic security and financial stability to property transactions in Mexico and the whole world.’
Escrow Services also offered by Stewart
Stewart’s fiduciary status also allows it to act as an escrow company, thereby eliminating another limitation in the current system. By using U.S., bonded, third-party Escrow, your money is held in an individually numbered, bonded and insured escrow account until everything is complete and the property rights have been transferred to you
In order to provide security, escrow services focus on two key aspects:
- Custody of Money and documents
- Disbursement of funds according to the predetermined conditions
The three parties involved (buyer, seller and agent) sign a legally binding contract detailing all the conditions for the management of funds, documents and money. The escrow agent becomes a neutral third party in the process and his only function is to oversee the fulfillment of agreement.
The escrow contract can’t be modified unless the parties involved agree to do so, in writing, before the agent. The funds and documents will be delivered only when each and every aspect of the contract is completed.
Focus on Mexico strives for better protection for our clients
Focus on Mexico is encouraging local developers and realtors in the Lake Chapala area to tap into Stewart Title services and offer Title Insurance and Escrow accounts. Title Insurance gives people peace of mind and removes the risk. When people, like ourselves, are at retirement age, it is very important to protect our investments. It’s just one of our efforts to ensure the best protection possible for those Focus clients who wish to purchase real estate in Mexico.
Developers can secure, for a fee, a title insurance policy for their projects or a commitment to insure that essentially says the property is clean and insurable. Title insurers will undertake an exhaustive search of property records, sometimes going back decades to establish clear title. "In the developments we've already built, title insurance wasn’t available, so we didn't see the necessity," said Omar O’Rourke, Broker, Vita Real Living Concepts, Ajijic. "I believe that from now on, one should not build a single development without offering the protection of title insurance to their clients. We are already working with Stewart to be the first developer Lakeside to put this in place for our newest project, El Dorado."
Note: For information only. For confirmation go to the web site of Stewart Title.
www.stewartgdl.com