New Mexico Register / Volume XXIX,
Issue 10 / May 29, 2018
This is an amendment to 13.14.5 NMAC, Section 8, effective July 1,
2018
13.14.5.8 ISSUANCE
UPON REQUEST AND RECEIPT OF BONA FIDE ORDER:
A. Upon receipt of a bona fide order
for any type of title insurance policy or policies to be issued pursuant to
13.14.6 NMAC, an insurer or title insurance agent must deliver to the proposed
insured, its authorized agent, other person in a fiduciary relationship with
the proposed insured, or the proposed insured’s attorney, and if none of the
aforementioned persons are available after using the insurer’s or title
insurance agent’s best efforts, then to the person designated by the person
opening the order for insurance, a commitment showing the exceptions which will
appear in the proposed policy as of the date of the commitment and requirements
to be met to insure the title in accordance with the order for insurance. Such commitment shall be delivered as soon as
practicable, using the insurer’s or title insurance agent’s best efforts,
allowing reasonably sufficient time for review prior to the completion of
closing of the transaction. No
commitment may be issued except upon receipt by the insurer or title insurance
agent of a bona fide order for title insurance as set out above.
B. The term “binder” is defined in
Subsection B of 13.14.1.8 NMAC as “a commitment for title insurance” and the
use of the terms “binder” and “commitment” shall refer to the same thing. [The term “commitment” includes the NM
form 6.1 plain language commitment. This
regulation shall not apply if the bona fide order is placed after the
transaction has been closed. A
commitment or binder shall not be issued for the purpose of determining the
state of the title of property subject to or to be subject in the future to a
foreclosure action, quiet title suit or other litigation.]
C. When a commitment or binder for one
to four family residential property is required to be produced and delivered in
accordance with this regulation it shall be delivered with a notice to
purchaser/insured NM form 35, 13.14.18.48 NMAC, as the cover page. However, the purchaser(s) need not be
identified nor sign the notice until closing.
The notice, when required, shall be signed by purchaser(s) at or before
the time of closing and retained in the closing file. The notice to purchaser/insured is not
required if, prior to the delivery of the commitment or binder, the proposed
insured(s) sign a contract for sale of the insured land that includes
substantially identical language to that included in NM form 35 and that is
completed by checking all appropriate blanks.
D. When requested by a proposed
insured lender the following language may be added to a title commitment
“note: according to the public records,
there have been no deeds conveying the property in this commitment within a
period of (six to 24) months prior to the date of this commitment, except as
follows:”
E. When a to-be-determined title
commitment is issued, an additional requirement to the commitment must be added
as follows: “This
title commitment is not effective until schedule A is completed and the company
reserves the right to amend and supplement this commitment with additional
information, requirements and exceptions based upon the provision of additional
information.”
[6/16/1986...4/3/1995; 13.14.5.8 NMAC - Rn,
13 NMAC 14.5.8, 5/15/2000; A, 9/1/2007; A, 8/17/2009; A, 3/1/2016; A, 7/1/2018]