BY LINDA JONES NEIL
The preventative notice is a document, which is filed by the Notary Public overseeing the transfer of title to prevent liens or other issues clouding the title before registration of the new owners.
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Civil Code Article 2926 of Baja California Sur requires that the notification of a pending transfer be filed at the Public Registry of Property showing the description of the property and the new owners. The purpose of this notification is to protect the validity of the title during the period the trustee bank is reviewing the deed, the notary is preparing the tax declarations and presenting them, and the registry and tax authorities are preparing the deed for insertion in the official books where the title is recorded.
In a slow market with no mortgages and not much activity, this preventative notice may not be terribly important. There may be no loans attached or sentences from a court, which affect a property. However, it is possible that a court ruling on an obligation of the previous owner may be issued and recorded against the property before the transfer is registered.
Also, if there are lenders who have loaned funds against the property and have not been paid, they may file liens. If no preventative notice has been filed the new owners could become liable for the lien or, most certainly, will not acquire a free and clear title. The preventative notice has an initial duration of 30 days and may be extended if the title does not transfer during this initial period. It is important, however, that dates be confirmed and monitored to be sure the notification does not expire.
As a buyer of a property or a real estate agent, it is important that the preventative notice be filed before funds are released.
The Preventative Notice, Copyright Consultores Phoenix, S.C.2021-23 Reproduction prohibited without permission.
