NM Underwriting Summary

Search/Exam

No minimum title search period is required by state law, marketable record title acts or other applicable title examination standards. See Section 59A-30-11(A )NMSA 1978, which requires a search and examination of title prior to the issuance of title insurance solely for the benefit of the underwriter. NM law and regulations require all title insurance agents to own, operate or control a title plant with at least 20 years of historical real estate records, which is certified by the state Insurance Division. See Section 59A-12-13 NMSA 1978 and Rule 13.14.2.8, NMAC.

UPL

Title insurance agents provide complete service on all aspects of escrow and title in the closing of a real estate transaction. No state law requires the involvement of an attorney. Attorneys are rarely involved in a typical residential transaction. Some agents use attorneys to prepare legal documents for a closing. Attorneys are frequently retained to represent the parties in a commercial transaction.

Mortgage/Transfer Tax

None

Spousal Joinder Requirements/Homestead

New Mexico is a community property state. All property acquired by husband and wife is presumed to be community property. Sections 40-3-8(B) and 40-3-12(A) NMSA 1978. Joinder of title-holding spouse is required by state statute in the execution of a conveyance deed or a security instrument. If joinder is lacking, the transaction may be ratified by the non-joining spouse, otherwise the deed or security instrument is void. See Section 40-3-13 NMSA 1978. Joinder of the non-title holding spouse is typically added to a conveyance deed and to the security instrument “pro forma”. NM now recognizes same sex marriages and community property laws apply to them in the same way.

Instrument Requirements

Certificates of Release

Title insurance underwriters (not agents) have the authority pursuant to state statute to execute and record releases of mortgages or deeds of trust subsequent to a 90-day period after payment in full of the mortgage or deed of trust and upon 10-day prior written notice to the lender. See Section 48-7-4.1 NMSA 1978.

Who May Serve As Trustee On Deed Of Trust

Per Section 48-10-6, NMSA 1978, a trustee under a deed of trust shall be:

• an organization doing business under the laws of New Mexico as a bank, trust company, savings and loan association, escrow company or title insurance company including an agent or underwriter;

• an individual who is a member of the state bar of New Mexico;

• an organization which is licensed, chartered or regulated by the federal deposit insurance corporation, the comptroller of the currency, the federal savings and loan insurance corporation, the federal home loan bank, the bureau of federal credit unions or any successors; or

• the parent corporation of any association or corporation referred to in this subsection or any subsidiary corporation all the stock of which is owned by or held solely for the benefit of any such association or corporation referred to in this subsection.

The trustee of a deed of trust or its parent or subsidiary corporation shall not be the beneficiary of the deed of trust.