13.14.18.13 NM FORM 35: NOTICE TO PURCHASER INSURED:
NOTICE TO PURCHASER INSURED
[NM Form 35]
Name of Purchaser(s): ________________________________________________________
Commitment No.: ______________________ Commitment issue date: _________________
Short Description of Property: __________________________________________________
Name and Telephone Number of Agency/Insurer ("Company"): _______________________
READ THIS NOTICE TO FAMILIARIZE YOURSELF
WITH ADDITIONAL COVERAGES AVAILABLE
The New Mexico Office of the Superintendent of Insurance requires that this Notice be given in connection with all commitments/binders issued for title insurance owner’s policies on one to four residential family properties.
THIS NOTICE SHOULD BE RETURNED TO THE COMPANY AT THE EARLIEST POSSIBLE TIME. IT MUST BE SIGNED NOT LATER THAN CLOSING. FAILURE TO ACT IMMEDIATELY COULD DELAY CLOSING SINCE NO TITLE POLICY CAN BE ISSUED UNTIL THIS DOCUMENT IS SIGNED AND RETURNED TO THE COMPANY.
Standard title insurance policies do not cover certain risks. These risks include the standard exceptions shown on your commitment/binder schedule “B”, which will also be part of your policy. Standard exceptions 1, 2, 3, 4, and 5 (like all the exceptions) limit the coverage under your title policy. However, some of this coverage can be reinstated as described below.
Standard Exception 1 (Parties in Possession) excludes coverage for certain claims of tenants, squatters or other persons who may claim possession of the property. Standard Exception 1 may be deleted and the coverage reinstated if you meet certain requirements. There is no extra premium charge for this coverage, but there may be a charge for inspection of the property.
Do you want this coverage? Yes_____ No _____
Standard Exception 2 (Unrecorded Easements) excludes coverage for easements not shown in the public records. Standard exception 2 may be deleted and the coverage reinstated if you meet certain requirements. There is no extra premium charge for this coverage, but a survey meeting the insurer’s requirements is required and there may be a charge for an inspection.
Do you want this coverage? Yes_____ No _____
Standard Exception 3 (Survey Protection) excludes coverage for encroachments, overlaps, conflicts in boundary lines, shortages in area, or other matters which would be disclosed by an accurate survey and inspection of the premises. Standard exception 3 may be deleted and the coverage reinstated if you meet certain requirements. The charge for this coverage is 15% of the full basic rate, and you must provide a survey meeting the insurer’s requirements for insurability.
Do you want this coverage? Yes_____ No _____
Standard Exception 4 (Lien Coverage) excludes coverage for certain liens (i.e. claims filed for payment for services and materials provided in connection with the property) not filed in the public records on the policy date. Standard exception 4 may be deleted and the coverage reinstated if you satisfy certain requirements. The charge for this coverage is $50 if the statutory time limit for filing a lien has expired. If the time limit has not expired, the charge is $3.00 for each $1,000 of insurance. In either case, you will have to provide information that the company requires, and the Buyer or Seller will be responsible for any cost of providing such information.
Do you want this coverage? Yes_____ No _____
PLEASE ACKNOWLEDGE YOU HAVE BEEN MADE AWARE THAT YOU MAY INCREASE YOUR TITLE POLICY AMOUNT IF YOU ADD IMPROVEMENTS, OR IF THE VALUE OF YOUR PROPERTY INCREASES OVER TIME, BY REQUESTING AN INCREASE IN COVERAGE AND PAYING THE APPLICABLE PREMIUMS. THIS WILL NOT CHANGE THE TERMS OF THE POLICY OTHER THAN THE AMOUNT.
_____________ initial here
Upon the company’s receipt of this signed notice, it may require that certain information and documents be produced. For example, a survey, inspection, lien waivers, affidavits, financial statements, etc. may be requested. The information requested will vary depending upon what additional coverage you have requested, the insurer’s guidelines for issuing such coverage and the particular transaction involved. Providing this information and examining it may extend the length of time needed to close and to prepare your title policy. TO AVOID DELAYS YOU ARE REQUESTED TO FILL OUT, SIGN AND RETURN THIS NOTICE TO THE COMPANY AS SOON AS POSSIBLE, ESPECIALLY IF YOU WANT ANY OF THE ADDITIONAL COVERAGES.
If you need further information concerning cost or requirements for obtaining the coverages only, you should call the Company at the telephone number given at the beginning of this Notice. IF YOU DO NOT UNDERSTAND
THE ADDITIONAL COVERAGES, OR WANT TO KNOW IF YOU NEED THESE COVERAGES, YOU ARE ENCOURAGED TO SEEK AN ATTORNEY’S ADVICE. THE CLOSING OFFICER AND THE COMPANY’S PERSONNEL ARE NOT REQUIRED AND MAY NOT BE QUALIFIED TO ANSWER SUCH QUESTIONS.
Purchaser(s)_________________________________________Date_______________________
[6-16-86...4-3-95; 13.14.18.54 NMAC - Rn, 13 NMAC 14.7.E.8 through 14.7.E.11, 5-15-00; 13.14.18.54 NMAC - Rn, 13.14.18.48 NMAC & A, 8-1-08; A, 8-17-09; A, 7-31-14; A, 7-1-18]
No guidelines are available for this form at this time.