nuts and bolts of title insurance...nuts and bolts of title insurance what does title insurance...
TRANSCRIPT
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