New Mexico reduces title insurance premiums

Beginning July 1, New Mexicans who buy, sell, or finance a property will pay less for title insurance. Title insurance is a form of insurance that protects lenders and homebuyers from financial loss due to defects in a title to a property. Thanks to the efforts of Think New Mexico, premiums for title insurance policies will decline by 6.0 percent. Think New Mexico is a results-oriented think tank whose mission is to improve the lives of all New Mexicans, according to their website at https://www.thinknewmexico.org/. They have been advocating for New Mexico consumers since 1999.

Think New Mexico submitted comments during the most recent ratemaking process highlighting how rapidly rising home prices have increased title insurance costs for consumers, according to their press release. That’s because the cost of title insurance is determined by the value of the property or amount financed. The higher the sales price or loan amount, the higher the premium. In the past year alone, higher values ​​increased the cost of title insurance by 13 percent. The reduction is slated to save New Mexicans throughout the state thousands of dollars in premium costs going forward.

Gary Sandler

So, what is title insurance? Unlike “regular” insurance that anticipates some future event, such as an automobile accident or sickness, title insurance insures past events, such as the transfer of titles to properties. The worst-case nightmare is when someone knocks on the door of the home you just purchased and tells you that your deed is a forgery and that they’re the actual owners of the home. Title insurance protects your interest should something like that ever occur.

More from Gary:How accurate is the assessed value of your home?

Locally, an excellent example of the genesis of a “chain of title” began with the signing of the Gadsden Purchase in 1853. The purchase of land from Mexico by the US was made to resolve a boundary dispute that resulted at the termination of the Mexican American War.

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