Title insurance insures, defends, indemnifies, and protects the policyholder against claims or losses arising from a defect or claim against the title to real property. Title insurance is usually issued to the buyer of real property by the title company that conducted the title search.
In New Mexico, title insurance is a contractual arrangement provided by a title insurance company to protect a policyholder against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. It is typically purchased by the buyer of the property, and the title insurance company will conduct a title search to identify any potential title issues before issuing the policy. The title insurance policy provides coverage for legal defense against claims and pays for any covered financial losses. New Mexico regulates the issuance of title insurance through the New Mexico Office of Superintendent of Insurance, which sets standards and regulations to ensure that title insurance companies operate within the state's legal framework. This includes licensing requirements, rules on the calculation of insurance rates, and guidelines for the title search and examination process.