Taos Real Estate

Title insurance isn't that much different in the Taos real estate market than in others.  We have four title companies in the town of Taos:

• Advantage Land Title
• First New Mexico Title
• Taos Title
• Teirras de Taos Title

As title insurance rates are regulated in New Mexico, there will be no difference in cost for a title policy at any of these companies.  They also use some of the same underwriters.  Some issues in the Taos real estate market surprise buyers.  This is particularly true when the buyer is purchasing vacant land.  Easements from old dirt roads, or easements through neighbor's property are quite common.  A buyer should be careful to thoroughly understand their rights to access the property, and whether the title insurance polcy actually insures their right to access.

Almost every buyer needs the Exceptions items explained.  Exceptions are those things "excepted" from coverage, thus they are not covered by the policy.  There are always at least 10 of them.  They include the original land grants and U.S. patents, which are what they are, and the title companies don't venture there.  They also include a list of items that are excepted, but can be covered if the buyer pays to have these exceptions removed.  I normally advise electing to have them all removed, as the title company will remove all but one for under $150.

The one that is the most important is the survey exception.  It will cost the buyer 15% of the title policy premium to have this exception removed.  I highly recommend that the buyer pay this cost so that the accuracy of the survey will be covered by the policy.  The seller by custom usually pays the title insurance premium in the Taos real estate market.  On a premium of say $2500, the buyer would pay the 15%, or $375 to have the survey coverage.

There are areas in the Taos real estate market that are unable to get title insurance at this time.  A large portion of areas west of the Rio Grande Gorge bridge were divided up many years ago into one quarter acre lots.  Carson Estates and Ranchos de Taos Estates are examples.  Many of these lots were given away or sold for a few dollars at the Seattle World Fair.  These parcels are unable to get title insurance.  There are many who build and live there anyway.

When you're purchasing property in the  Taos real estate market, don't rely on your broker to read the title insurance binder and catch problems.  You need to read it carefully and ask whatever questions necessary to satisfy your needs in understanding your title insurance coverage.

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