N.M. Admin. Code § 13.14.5.12 - STANDARD EXCEPTIONS
A policy shall contain in schedule B the standard exceptions 1 through 7, except as otherwise provided by these rules. Said standard exceptions may be preprinted in schedule B and, when specifically authorized, may be deleted by stating, "exceptions _____________ are hereby deleted in their entirety". Standard exception 5 shall refer to "spouse of the vestee" in all owner's policies and in all situations where the vestee and insured are not the same.
A. Parties in possession -
Standard exception 1: Standard exception 1 may be deleted upon satisfactory
proof that there are no parties in possession of the property being insured
other than those claiming rights or possession in the property through matters
of public record.
B. Unrecorded
easements - Standard exception 2: Standard exception 2 may be deleted if a
survey of the property being insured satisfactorily shows that there are no
easements or claims of easements affecting the insured property other than
those shown by the public records.
C. Survey coverage - Standard exception 3:
Standard exception 3 may be deleted in its entirety if the insurer considers
the risk acceptable. Any additional premium required by these rules must be
paid and the title insurer or its title insurance agency must be furnished with
a survey of the insured property meeting the insurer's underwriting standards
prior to the deletion.
D.
Mechanics' and Materialmen's Lien Coverage - Standard Exception 4:
(1) In an owner's policy, standard exception
4 may be deleted in only one of two circumstances:
(a) the statutory period for filing
mechanics' or materialmen's liens expires prior to the date of the
policy;
(b) some or all of the
improvements will be "new construction" (or recently completed), and the
statutory period for the filing of said liens will not have expired;
or
(c) in either circumstance the
construction of all improvements on the insured property must have been fully
completed and accepted by the insured owner and the appropriate additional
premiums required by these rules must be paid.
(2) In a loan policy, standard exception 4
may be deleted in only one of two circumstances:
(a) if the insurer's underwriting
requirements for evidence of priority have been met; or
(b) if the insurer's underwriting
requirements for evidence of priority have not been met but the insurer's
underwriting requirements of the risk incurred by reason of the lack of
priority have been met.
(c) In
either circumstance, the appropriate additional premiums as established in a
title rate case shall be paid.
E. Spousal rights - Standard exception 5:
Standard exception 5 may be deleted from a policy if the vestee named in such
policy is not an individual.
F.
Water rights - Standard exception 6: Standard exception 6 shall not be modified
or deleted.
G. Taxes - Standard
exception 7: Standard exception 7 may be modified as follows:
(1) To read: "Taxes for the second half of
the year ______, and thereafter." Such modification shall not be made unless
all taxes assessed or assessable through and including the first half of the ad
valorem tax year have been paid or are being paid out of funds which are under
the control of the title insurance agency or title insurer in an escrow
account.
(2) To read: "Taxes for
the year _______, and thereafter, not yet due or payable."
(3) If the ad valorem taxes for the first
half of a year have been paid, and taxes for the second half are not yet
delinquent, standard exception 7 may be modified, by adding the phrase: "not
yet delinquent."
H. Gap
period - Standard exception 8: Standard exception 8 shall not be included in a
policy.
Notes
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