Nick Fong of Ronival Real Estate in Baja California Sur presents another Q and A session covering real estate topics in Mexico. In this video, Nick answers questions about title insurance policies and where you can purchase them in Los Cabos. Also, he answers the question: what is title insurance? Nick covers the title-insurance process and explains what is covered by title insurance. Finally, he goes over other important details that will get you on the right track. Now, continue reading to find out more…
Nick answers: What is a title insurance policy?
Your title insurance policy is broken into two parts. Title review is the first part, which is done prior to the closing. It lists what is being covered and what isn’t being covered by your policy. Also, it details the exclusions. The second part is the policy itself. It is non-transferable and is good for the life of the ownership of the property. That means, if you own the property for 20 years, it’s good for 20 years. That’s a title insurance policy in a nutshell.
When you purchase a home in Cabo, your title insurance policy covers the property for the life of ownership. Clients of Ronival Real Estate typically purchase their policy at the day of closing.
Nick replies to: Where to buy Title Insurance in Cabo?
Specifically in Los Cabos, two title insurance companies are used by clients of Ronival Real Estate. They buy title insurance for their purchased homes in Baja. The first company is Armour Secure, which is a privately held insurance group with locations all around the world. Second is the company called Secure Title. They provide safety and security in the real estate purchase and acquisition process in Mexico. Both are conveniently located within Cabo San Lucas.
See the highlights from previous Q & A’s by Nick Fong
Nick Fong answers a question in his previous Q & A about who handles transactions and how is money transferred to the United States. In his answer, Nick explains that there are closing companies in Mexico, like the escrow company and title company in the US. The closing company handles all the paperwork and the transaction. To be specific, they liaison between the notary, attorney, and the real estate agent. Money is held in an escrow account while the details are being handled. After completion of the transaction, after closing, the money gets wired to the seller’s bank account.
Melissa Murphy, one of Nick’s newer agents, forwarded a list of questions for Nick to answer, since they were asked so often. The first question answered by Nick was: How do you pass your property on to your kids? He explained that there is an actual deed that is held within a Mexican Bank Trust. It is called an escritura in Spanish, which is purchased by the buyer in a real estate transaction in Mexico.
Finally, Nick answers if there any tax consequences in Mexico to deal with. He answers with a “yes.” In the vides, he says that you are responsible for property real estate taxes. One of the great advantages of real estate taxes in Mexico, as compared to the US and Canada, are very low. Those taxes are paid every year in January. When you pay your full tax bill in full, in January, you get a 20% discount. To be specific, you pay about one tenth of one percent of the property value, every year, which is much less than what you’re probably used to.
Baja California Sur real estate
Many Americans, Canadians, and people from other countries choose to make Los Cabos and other magical towns in Baja California Sur, Mexico, their home or vacation home. Discover how to purchase your dream home in Baja. Make an appointment with the top Real Estate Broker in Baja: Nick Fong, featured on HGTV’s Beachfront Bargain Hunt.
Since 2010, Ronival has been helping clients find the best homes in Cabo and throughout Baja California Sur. And, they’re highly-skilled negotiators that’ll get you the best price. Whether you plan to buy a property or quickly sell your Baja real estate, they’ve got you covered!
If you’d like to take a tour of a property in Cabo or anywhere else in Baja California Sur, just click CONTACT to inquire. Or, call directly at 619-831-2000. Ronival will be happy to answer your questions. You can also schedule a time to show you around this breathtaking location.
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Thank you for reading Nick Fong’s Title Insurance Q and A in Baja California Sur Be sure to read other posts about Cabo and Baja California Sur on the Ronival blog. There, learn about the many wonderful aspects of Baja California Sur, Mexico, from blog posts like this.