NUTS AND BOLTS OF TITLE INSURANCE
NUTS AND BOLTS OF TITLE INSURANCE
NUTS AND BOLTS OF TITLE INSURANCE
Marc Israel, Esq. [email protected]
NUTS AND BOLTS OF TITLE INSURANCE
What Does Title Insurance “Insure”?
That Title is Vested in Named Insured
• Should Be an Unbroken Chain of Title • Breaks in Title are Insured by Title Policy • Mistakes, Errors, Fraud • Monetary Claim on Policy, Not Restoration to Possession
NUTS AND BOLTS OF TITLE INSURANCE
What Does Title Insurance “Insure”?
That Title is Free of Liens and Encumbrances
• Encumbrances to the Title to the Property • Goal is to Transfer “Free and Clear” • Mortgages, Judgments, Other Liens • Mistakes, Errors, Fraud
NUTS AND BOLTS OF TITLE INSURANCE
What Does Title Insurance “Insure”?
That Insured Has Full Use and Access to Property
• Surveys • Encroachments • Possible “Out of Possession” • Adverse Possession • Boundary Line Agreement
NUTS AND BOLTS OF TITLE INSURANCE
Types of Title Policies
• Owner’s (Fee) Policy • Lender’s (Mortgage) Policy • Lender’s Policy Provides Coverage for Priority Position and Ability to Foreclose
NUTS AND BOLTS OF TITLE INSURANCE
Title Ordering and Rates
• Usually Ordered When the Contract is Signed • Order Early—Survey Issues • Rates Regulated by New York State • No Discounts Other Than Statutory Discounts
NUTS AND BOLTS OF TITLE INSURANCE
Statutory Discounts
• Simultaneous Fee/Mortgage Rate (Simul Rate) • Condominium Bulk Rate Discount • Right of Condo Purchaser to Use Title Company of Choice • Reissue Rate
NUTS AND BOLTS OF TITLE INSURANCE
Coop Apartments
• Not Real Property—Stock and Lease • Judgment and Lien Search • Limited Search and Limited Liability • Coop “Title” Insurance (Leasehold Insurance)
NUTS AND BOLTS OF TITLE INSURANCE
The Title Search—County Recording Office
• Looking for Unbroken Chain of Title • Deed • Mortgages • Easements • Covenants and Restrictions
NUTS AND BOLTS OF TITLE INSURANCE
The Title Search—County Clerk’s Office • Judgments • Lis Pendens • Mechanics Liens • ECB Violations • Parking Violations Bureau Liens
NUTS AND BOLTS OF TITLE INSURANCE
The Title Search—Municipal Searches
• Tax Search • Certificate of Occupancy • Department of Buildings • Fire Department • HPD/Emergency Repairs
NUTS AND BOLTS OF TITLE INSURANCE
Schedule A • Metes and Bounds (Legal) Description • Must Match Previous Deed • Must Be Consistent with Survey
NUTS AND BOLTS OF TITLE INSURANCE
Schedule B
• Exceptions to Title Insurance • Most Important Part of the Title Report • Exceptions Must Be Cleared or Omitted • Purchaser Can Take Title “Subject To” Exceptions
NUTS AND BOLTS OF TITLE INSURANCE
Clearing Schedule B Title Exceptions—Mortgages
• Satisfaction of Mortgage and Payoff Letter • Private Mortgages • Prior Title Company Clearance • Ancient Mortgages
NUTS AND BOLTS OF TITLE INSURANCE
Clearing Schedule B Title Exceptions—Liens, Taxes, and Deed Issues
• Breaks in Title • Surrogates Court Matters • Judgments and Liens • Escrowing for Schedule B Exceptions • Attorney Undertakings
NUTS AND BOLTS OF TITLE INSURANCE
The Title Company’s Role at Closing—Reviewing Documents to be Recorded
• Review All Documents • Spelling and Consistency of Names • Accuracy of Deed and Mortgage • Schedule A
NUTS AND BOLTS OF TITLE INSURANCE
The Title Company’s Role at Closing—Collecting Monies
• Collect Payoff of Mortgages, Liens, Judgments • Collect all Taxes • Collect Title Fees and Premium
NUTS AND BOLTS OF TITLE INSURANCE
The Title Company’s Role at Closing—Marking Up Report and Collecting
Documents • Collect Schedule B and Other Clearance Documents • Marking Up Report • “Insure”, “Except”, “Omit” “For Information Only”
NUTS AND BOLTS OF TITLE INSURANCE
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