The land transfer and “notario público” process in Mexico and other Latin American countries differs significantly from the U.S. system. In Mexico, a notario acknowledges and certifies a property transfer, which provides “judicial certainty” as to the authenticity of the process. Without title insurance, a buyer may find it very difficult to recover monetarily for errors and omisions of a notario público in the transfer process. Public registries in Mexico and most Latin American countries do not provide monetary indemnification in the event of loss due to a title defect or errors. As in the U.S., title insurance may be an effective tool to mitigate risk in Mexican real estate transactions.
The title insurance market in Mexico and Latin America continues to evolve. TLA can facilitate the purchase of a U.S.-style title insurance policy to protect against recording errors, liens, encumbrances, encroachments, taxes and boundary line disputes, plus fraud, misrepresentation, impersonation, secret marriages, incapacity of parties and undisclosed heirs.