New Mexico Register / Volume XXXV,
Issue 13 / July 16, 2024
This is an
amendment to 13.4.5 NMAC, Section 10 effective 7/16/2024.
13.14.5.10 STANDARD
EXCEPTIONS IN SCHEDULE B:
A. All commitments shall
contain each of the following exceptions in the order stated herein.
(1) Rights
or claims of parties in possession not shown by the public
records.
(2) Easements,
or claims of easements, not shown by the public
records.
(3) Encroachments,
overlaps, conflicts in boundary lines, or other matter which would be disclosed
by an accurate survey and inspection of the premises.
(4) Any
lien, claim or right to a lien, for services, labor or
materiel heretofore or hereafter furnished, imposed by law and not shown by the
public records.
(5) Community
property, survivorship, or homestead rights, if any, of any spouse of the
insured (or vestee in a leasehold or loan policy).
(6) Water
rights, claims or title to water.
(7) Taxes
for the year _____, and thereafter. (See 13.14.5.12 NMAC)
(8) Defects,
liens, encumbrances, adverse claims or other matters, if any, created first
appearing in the public records or attaching subsequent to
the effective date hereof but prior to the date the proposed insured acquires
for value of record the estate or interest or mortgage thereon covered by this
commitment.
B. Additionally,
each commitment may contain the following statement when said commitment is
issued to commit for both an owner’s policy and a loan policy or a loan policy
only: “Exceptions __________ will not appear in the loan policy but will appear
in the owner’s policy, if any.”
C. If the commitment
is for a loan policy containing a two-year claims made limitation, the
following statement must be added: “The loan policy containing a two-year
claims made limitation will contain an exception limiting its coverage to two
years duration.”
D. Each commitment
shall contain the following statement: “Standard exceptions 1, 2, 3, and or 4,
may be deleted from a policy upon compliance with all provisions of the
applicable rules, upon payment of all additional premiums required by the
applicable rules, upon receipt of the required documents and upon compliance
with the company’s underwriting standards for each such deletion.
E. Standard
exception 5 may be deleted from the policy if the named insured in the case of
an owner’s policy, or the vestee, in the case of a leasehold or loan policy, is
a corporation, a partnership, or other artificial entity, or a person holding
title as trustee.”
[13.14.5.10 NMAC – Rp, 13.14.5.9 NMAC, 1/1/2021; A/E, 1/24/2024, N,
07/16/2024]