Title Insurance

What it covers

A policy covers loss from defects that already existed when you took ownership. An undisclosed lien. A forged or improperly executed deed. A recording error at the county. An heir nobody knew about. Unpaid taxes. An easement that never made it into the file.

None of these are exotic. They are the ordinary residue of property changing hands for a hundred years, and they surface at the worst possible moment — when you go to sell, or borrow, or build.

Two policies, two different jobs

A lender’s policy protects the lender’s loan balance. Nearly every mortgage requires one, and it does nothing for you.

An owner’s policy protects your equity, for as long as you or your heirs hold an interest in the property. It is the one that matters to you, it is not automatic, and most buyers should have both.

Why there is nothing to renew

Other insurance covers what might happen. Title insurance covers what already did. The risk sits entirely in the past, which is why you pay once and the policy stays in force as long as your interest does.

What it costs here

New Mexico is one of the few states where title insurance premiums are set by the Office of Superintendent of Insurance. Every title company in the state charges the same rate for the same policy.

That is worth knowing, because it means price is not the question. What differs between companies is the examination behind the policy and how the file is handled — which is the only thing left to choose on.

The policy is the last step, not the first

Before anything is insured, someone reads the record: the chain of ownership, the liens, the easements, the mineral reservations, the restrictions. Then the problems get cleared. The policy reflects work that has already been done — it is not a substitute for doing it.