If you are buying, selling, or giving away your property, there is no requirement to use a title company. In the previous article, I detailed the many benefits of title insurance; however, you are by no means required to use a title co. or obtain title insurance in New Mexico.
Over the years property has historically been transferred simply by exchanging deeds. If one party wishes to transfer their rights to another, they can simply give a deed for the property to anyone they would like with or without monetary compensation. Monetary compensation is not a requirement as I have seen many deeds state “for love and affection” as compensation.
One thing you cannot do is exchange real estate on solely a handshake or verbal agreement, there is something referred as “The Statute Of Frauds” that prevents this. The Statute Of Frauds states that real estate transactions must be documented in writing and contain the identity of the property, the terms on which the property was transferred, and that a contract actually exists.
So as you can see, it is not really complicated, however, with that said, all transactions and agreements are unique, so if you do not wish to use a title company for your transaction, then by all means, you should at least hire an attorney to prepare the agreement and the deed. Keep in mind that there are different types of deeds depending on whether or not you are warranting the property free of encumbrances or transferring the property as is without warranty. Attorneys are very versed at real estate document preparation and deed types and will include language that you may not have even thought about, but will keep you out of trouble later on if an issue were to arise.
Also, once the documents have been signed, they should be recorded at the county courthouse. Recording gives public notice that a transaction has taken place and proves the existence of the new ownership. There is no statute that requires the deed to be recorded in order for it to be valid, however, by not recording you take the risk of someone questioning your ownership in the future, you also risk the chance of the deed being misplaced which would create further complications and questioning in regard to your ownership.
If you have any additional questions in regard to transferring your property, please feel free to contact me at any time.
Rob Swan
Qualifying Broker
Swan Realty
575-613-4243
rob@swanrealtyinc.com
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