Title insurance is indemnity insurance against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens.
The owner's policy assures a purchaser that the title to the property is vested in that purchaser and that it is free from all defects, liens and encumbrances, except those in which are listed as exceptions in the policy or are excluded from the scope of the policy's coverage.
New Mexico has set regulated premiums that are charged. It depends on the amount of the policy as to how much the premium is. The rates may include discounts if title insurance is ordered within a specified time after last policy issued, or if the mortgage being insured is a refinance of an earlier mortgage.
Escrow is “a deed, a bond, money or a piece of property held in trust by a third party, to be turned over to the grantee only upon fulfillment of a condition” as defined by Webster. Graham Title Co.
is a neutral third party or escrow officer. We prepare escrow instructions that are agreed upon by all parties, take payments by the buyer and disperse the funds according to the escrow instruction. If agreed upon, taxes and insurance may be paid through funds put in reserve from payments made