First American Title Insurance Company Brochure for Mexico

FIRST AMERICAN TITLE INSURANCE COMPANY BROCHURE FOR MEXICO

International Title Insurance policies designed for the purchase, financing and leasing of real property throughout Mexico providing unparalleled financial protection, title insurance expertise and superior customer service.

Valuable Title Protection For Property Owners and Lenders

First in Protection

First American Title Insurance Company (“First American”) is one of the largest title companies in the world and has been in business since 1889. We are known for our innovative leadership in the industry and expertise in underwriting. First American’s title policies are backed by the financial standing of its parent, First American Corporation, which has revenues of over $3 billion. Its stock is traded on the New York Stock Exchange (under the symbol FAF).

With a First American International Policy, you are protected by an insurance policy, a true indemnity contract that we uphold in the U.S. If any defect covered by our policy in the chain of title is found, we are responsible for the loss or damage this defect causes. The First American difference in protection is that our policies cover non-recorded as well as recorded matters at the Public Registry of Property.

The policies are issued directly by First American in the U.S. As such, all claims will be handled in the U.S. without the insured having to go through the Mexican court system. Your policy is also backed by our obligation to provide a defense for covered matters. That means that First American will stand by you in response to a challenge to your title in Mexico. You simply tender your claim to First American, and we will defend in Mexico your property rights as insured.

First in Mexico

First American was the first U.S. company to issue title insurance policies on Mexican land. We have been facilitating complex commercial, industrial and residential real estate transactions throughout the country for over twenty -five years. We are experts in the Mexican law, property ownership and transfer system. We have the experience to simplify Mexico’s often difficult and complex real estate transactional processes and eliminate delays, and costly or damaging misunderstandings. Our clients include institutional investors, industrial park developers, hotel/resort owners, retailers, manufacturers, as well as the residential buyer.

First in Service

Our goal at First American is to make every Mexico transaction safe, easy and economical. After twenty -five years of operating in Mexico, we have developed time-tested, efficient policy issuance procedures. We have excellent working relationships with U.S. and Mexican experts, including attorneys, brokers, engineers, appraisers and surveyors, to assist you at every step of a transaction in legal, governmental, banking, tax, and real estate matters.

We also offer escrow services as an independent and neutral holder of funds. We have an international escrow account arranged through a major U.S. bank to securely hold deposits, proceeds from sales and/or purchase funds. Under your instructions, we will disburse the funds to payoff mortgages, real estate commissions, taxes due at closings, closing fees and/or the purchase price.

First in International

First American currently offers title insurance protection in 51 countries including Canada, the Caribbean, and the majority of Latin America, Europe and Asia.

THE FIRST AMERICAN INTERNATIONAL TITLE INSURANCE POLICIES FOR MEXICO

The First American International Policy of Title Insurance with the Mexican Endorsement (“Mexican Policy”) is very similar to the American Land Title Association (“ALTA”) policy available in the U.S. It is designed to insure any recognized land interest in Mexico such as direct ownership, leasehold and trust or beneficial ownership (“fideicomiso”) covering commercial and residential properties, including privatized communal farms (“ejidos”), beachfront and border properties (the “excluded zones”).

The Mexican Policy includes specific title risk coverage against marital rights, fraud, mortgages, mechanic’s and/or tax liens, easements, contractual obligations restricting the use of the property, adverse possession by a third party, ejidos, forgery and other matters not of record (based upon our receipt of acceptable surveys, surveyor’s certificates or affidavits, seller’s affidavits and real property tax certificates). The policy insures against loss from defects in title unknown to the insured prior to the date of the transfer of title or loan that were not otherwise stated in the policy, regardless of whether the loss results from errors in the Public Registry, errors in the search of the Public Registry or any other cause. It also covers access to the land. The policy is written in English, insures in dollars and pays claims in dollars. It is a U.S. policy covering land in Mexico issued directly by First American in the U.S. Coverage continues for the duration of time that the insured holds its interest in the real property.

The Mexican Policy has fourteen clauses dealing with significant threats to title of concern to the Mexico investor, including …

• Ownership issues, such as title being vested other than as insured, or having defects, liens, mortgages, contracts, options and other encumbrances on the title.
• Fraud and forgery matters, including those resulting from undue influence, duress, incapacity or impersonation affecting the title.
• Physical site questions, including right of access to and from the land, covenants limiting its use, easements and rights of way.
• Transfer issues, such as unauthorized conveyances by a corporation, partnership, trust, limited liability company or other legal entity, or one derived through a defective judicial proceeding.
• Documentation problems, such as the invalidity of a document executed under an invalid power of attorney, or one improperly executed or recorded, or one with an erroneous or inadequate legal description of the land.

In addition to the coverages in the Owner’s Policy, the Mexican Loan Policy offers lenders protection regarding …

• Insured mortgage issues, including the invalidity or unenforceability of a lien, charge or privilege of the insured mortgage – or of any assignment of that mortgage – due to, among other things, the invalid or unauthorized execution of the mortgage. It also insures priority of the insured mortgage over any lien, charge, privilege or encumbrance affecting title to the property covered by the insured mortgage.

We can also offer a full array of endorsements to cover the needs of the insured. Most of the standard U.S. type endorsements as well as ones specific to Mexican land or the particular transaction can be added to a policy.

MEXICO PREMIUM RATES FOR TITLE INSURANCE

Owner’s, Lender’s & Leasehold Policies

EFFECTIVE AS OF OCTOBER 1, 2001

Minimum Risk Premium

The minimum risk premium for any policy of title insurance shall be $1,000.00.

Simultaneous Issue

Owner’s and Lender’s Policies must have the same, or no greater than 30 days difference in, effective dates and must cover the same property. The larger policy is calculated at the above rates and the smaller policy issued simultaneously shall be calculated at $1.00 per $1,000.00 of coverage.

Endorsements

The minimum charge for any endorsement shall be $25.00. The maximum charge per endorsement shall be 40% of the premium. The risk, according to the underwriter, of a specific endorsement will govern the rate to be charged.

NOTE: All premiums are to be rounded up to the nearest whole dollar. All fractions of insurance are to be rounded up to the next $100.00.

Latin America / Caribbean Division
13450 W. Sunrise Boulevard, Suite 300, Sunrise, FL 33323
TEL 954.839.2900 • 877.641.6767 FAX 954.838.9228
www.firstam.com

Investing in Mexico, Investors may find treasures south of the border

Investing in Mexico – Investors may find treasures south of the border.

Introduction

International Real Estate

Amongst investment opportunities, international real estate has become one of the most sought after options in recent years due to its continuous success and increasing popularity.

Income Producing Opportunities

It turns out that Mexico has the highest per capita income in Latin America, and that figure is increasing rapidly. Many investors are unaware of the incredible growth that is happening in Mexico.

Growth

Mexicos economy is currently undergoing significant growth and improvement. The development of the tourism industry, along with the recent improvements in the mortgage market, has provided Mexico with an ever improving opportunity to develop impressive future growth for real estate investments. This high-growth sector is driven basically by two factors: international travelers and their preference for Mexico´s sunny climate, spectacular beaches and singular attractions, and Mexicos National Trust Fund for Tourism Development, known by its Spanish acronym, FONATUR.

Property

For the first time, significant foreign investment as an investment , not vacation or retirement property, is being made in Mexico Real Estate.

The assistance of a lawyer specialising in Mexican property will help to ensure a problem free transaction, along with providing a full explanation of the varied fees and taxes associated with buying Mexican real estate. Consider the straight forward buying process of Mexican property, along with the associated buying costs.

Couple of things to remember when you are ready to purchase property:

1-The Notario has to have a Certificado de Libertad de Gravamen (No liens Certificate from the state government) which it is obtained at the Registro publico de la Propiedad Raiz (Public Registry of the Property in the state in which the property is located).

2-You have the rigth to a translator which his/her name should be included in the actual deed for record purposes.

3-The notario is co-responsible for collecting capital gain taxes (ISR – Impuesto Sobre la renta), if you are the seller you may be excempt of paying this tax if you can prove that you have been living in the property (this can be done by showing the latest electric bills to the property.

Doing business in Mexico

Investing in Mexico is not easy or for everyone, many instances of foreigners getting screwed doing business in Mexico results not from a purposeful intent to do so but because of a difference in cultural perceptions.

Profeco

If you are ripped off there is a consumer protection agency called PROFECO, The Federal Consumer Protection Agency, with offices in all major cities. The important attribute about PROFECO is that they have the power to order the service or product provider to return moneys, or complete what was promised.

Real Estate Careers in Mexico

Whether you are looking for a full-time career or would just like to add supplemental income, STAMATIO & COMPANY has a solution for you! Work as a full time real estate agent and enjoy unlimited income potential, or work as a part-time referral agent and generate a stream of additional income by referring your family, friends, and neighbors who are looking to buy or sell a home.

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Mexico City Offers Free Health Insurance for Tourists

MEXICO.-A program by Mexico City Government was implemented this week for national and international tourists visiting Mexico City, this program was implemented as a way to recover the tourist industry heavily hit by the A/H1N1 influenza, informed Mexico City Mayor Marcelo Ebrard.

Medical care against influenza virus type A H1N1, by accident or illness, and ambulance dispatch hospitalization, in addition to medication.

There will also be dental, medical repatriation, hotel stay on convalesence, accompanying minors and funeral repatriation, as well as legal assistance in case of theft, loss of luggage and flight delay or cancellation.

Now the challenge is to ensure that ( the insurance) works, “Ebrard said when delivering the firsts Travel Assistance Cards in Mexico to tourists who were on their vacation and did attend this public event.

An international insurance company contracted by the government of the Federal District will cover the expenses and the deductible amount will be paid by the Mexico City Government.

Mexico City receives an annual influx of some three million international tourists and four million domestic, but now the hotel occupancy is at 59% capacity after the peak of the epidemic of swine flu in late April and May of this year.

Morelia UNESCO World Heritage

Before the arrival of the Spaniards, the region was inhabited by a people known as the Pirindas, and the place was called “Guayangareo”. Morelia was officially founded on May 18, 1541, by the first viceroy of New Spain, Antonio de Mendoza, as “City of Michoacán”. It was inhabited by 50 Spanish noble families and by Purepecha Indians (brought from Pátzcuaro and Tiripetio to serve the Spanish). In 1545, the name was changed to “Valladolid”.

Unlike Pátzcuaro, an indigenous city of which Valladolid was a rival for a long time, Valladolid was essentially Spanish, inhabited by conquistadors and their descendants, and by upstarts that came from the metropolis. In 1547 it got the title of city, and was given a coat of arms in 1553.

The rivalry between Pátzcuaro and Valladolid occurred when they began a dispute about where the seat of the bishopric of Michoacan should locate. The Spaniards wanted Valladolid to be made into an episcopal city, but Vasco de Quiroga, who always defended the Indians from the Spaniards, wanted this title to be granted to Pátzcuaro. In 1571, six years after Vasco de Quiroga’s death, King Philip II upgraded Valladolid to an episcopal city.

In 1580, Valladolid replaced Pátzcuaro as the capital of Michoacán. During the colonial period a number of religious orders established themselves in the city, allowing it to take an important place in the history of art and culture in New Spain. Important architectural sites from the colonial period include the Catedral de Morelia, the Aqueduct (built between 1785 and 1789 by Fray Antonio de San Miguel), the Governor’s Palace, the Palacio Clavijero, and numerous churches, convents, and houses. The Conservatorio de Música de las Rosas of Morelia was the first music conservatory in the Americas.

The city is the birthplace of José María Morelos (1765), after whom it was renamed on September 12, 1828, and who along with Miguel Hidalgo y Costilla began the War of Independence from Spain in 1810. It was also the birthplace of Agustín de Iturbide (1783), later Emperor of Mexico, and Josefa Ortiz de Domínguez, who played a key role in the instigation of the Independence movement

On September 15, 2008, at 11 p.m., during festivities celebrating the 198th anniversary of the Declaration of Independence, civilians gathered on the Plaza Melchor Ocampo were attacked by a fragmentation grenade, followed by a second detonation four blocks away. Official sources confirmed eight dead and 135 injured. Terrorist groups linked to organized crime and drug trafficking were alleged to be responsible for these attacks. On September 26, 2008, three arrests were made in connection with the attacks.

The Historic Downtown Area (Centro Histórico), a UNESCO World Heritage Site, encompasses approximately 150 city blocks at the city center, roughly corresponding to the urban area of the city at the end of the eighteenth century. The Centro Histórico contains over 1,000 historical buildings and sites.

Morelia is characterized by the magnificence of its monuments which are mostly colonial. The most remarkable buildings are the baroque cathedral, finished in 1744; the convent of San Francisco, built in 1513; the convent of San Agustín, founded in 1550; the college and temple of La Compañia de Jesus, started in 1580 and known as Palacio Clavijero; the convent of El Carmen, constructed in 1597; the convent of Santa Catarina that dates from the seventeenth and eighteenth centuries.

Other important constructions are the 1613 convent of La Merced, the college of Santa Rosa María whose foundation was in 1743; the palace of the Executive, its construction started in 1734 and finished in 1770; the eighteenth century palaces of the Legislature and of the Judiciary; the sixteenth century college Primitivo y Nacional de San Nicolas de Hidalgo, reconstructed in 1882, the eighteenth century Museo Michoacano; and the house where José María Morelos was born, on Corregidora street, which is now used as a museum, library and for cultural events.

The Casa de las Artesanías features a large variety of high quality artisanal works. There are several other notable historical churches in town including the Templo de las Rosas annex to the Conservatorio de las Rosas, which are both examples of baroque architecture, and the Templo de San Diego (also known as Santuario de Guadalupe), built with an interpretation of the Rococo style using indigenous colors and techniques. The monumental aqueduct, built in colonial days to bring water into town, was functional through 1910. It is made up by more than 250 arches.

Its construction started in 1787 and finished in 1789. The inner city is built of reddish sandstone, lending the city a unique character among Mexico’s many noteworthy colonial cities and giving origin to the name Ciudad de las Canteras Rosas (“city of pink stone”) that is sometimes used in reference to Morelia.

Monarcas Morelia, a soccer team playing in the Primera División de México, is based in Morelia.

Morelia has three golf courses: “Club Campestre de Morelia” founded in 1968, which has 9 holes with great difficulty because of very large trees and beautiful lakes; “Tres Marías”, a 27-hole Jack Nicklaus-designed course that hosts the LPGA once a year; “Club Erandeni”, which recently opened its fairways to the public. A fourth, designed by Carter Morrish, is under development in Bosque Monarca, now known as Altozano.

At the southern edge of the city is the Santa María mountain range, and is home to upscale residential districts, private sector schools and the Universidad Vasco de Quiroga and the Instituto Tecnológico y de Estudios Superiores de Monterrey. Under construction in this area is Paseo Morelia, a shopping center which will be among the largest in Latin America, slated to open in late 2008. The main road leading to this area has been recently re-named Juan Pablo Blvd., and it leads to a traffic circle bearing a bronze statute of the late Pope John Paul II.

Land has been donated in the vicinity for the construction of a school operated by the Legionaries of Christ. Originally called Montaña Monarca, this development has been renamed Altozano and is patterned after the Ave Maria planned community near Naples, Florida, United States.

Since 2006, the first half of the prestigious Linares chess tournament has been held in Morelia.