Can my bank pick which title company I use?
While your bank can require you to purchase a new loan policy, New York Banking Law Section 595-a precludes a mortgage banker or a mortgage broker from requiring a borrower to purchase title insurance from a specific title company, agency or agent as a condition for securing a mortgage commitment. Likewise, section 2503(a)(2) of the Insurance Law imposes the same restrictions on banks, trust companies, savings banks, savings and loan associations and national banks.
While it is common and legal for banks to order the title insurance on your behalf as an accommodation, you have the right to tell the bank that you will bring your own insurance to the closing table. What if I don’t buy Title Insurance?
If you purchase property and do not buy title insurance, then you are not protected against the numerous ways that your ownership can be impaired. You can’t know for sure if the person selling you the property actually owns it, or if the seller pockets the money and doesn’t pay off the bank. If a claim is made for ownership of the property and prevails, you will lose all of the money that you paid.
Title Insurance protects you against all claims of ownership to your property and will, in many cases, defend you against these claims.
Can I still sell my home if I can’t find my Original Deed?
Yes, when you purchase your home, your Deed is taken by the Title Company to the County Clerk or Register’s office where your property is located to be recorded in the public records. Once recorded, anybody who checks the records will see that you are the lawful owner of the property. The original Deed is then returned to you or your attorney. Over the years, these Deeds are commonly lost. Once recorded, however, you can sell or refinance your home without an original copy of your Deed. What is a Mortgage?
A mortgage is a document that you sign when you take out a loan against your property. This document is recorded in public records of the County Clerk or Register’s office where your property is located. This represents a lien against your property that can either be satisfied when you pay off your loan or foreclosed when you don’t. Either way, this is a tool that banks use to let anybody who checks the records know that the bank has priority over any and all subsequent liens on your property.
What if I can’t make it to a closing?
If you can’t make it to a closing, we can prepare a Power of Attorney in which you grant authority to another person to sign documents on your behalf. This document is also recorded in the County Clerk or Register’s office where your property is located to show that your “attorney in fact” was legally allowed to sign your name in your place.
I made a Power Of Attorney years ago. Is it still good?
Legally, yes. Unfortunately, most power of attorney forms do not contain a limiting clause that would render it ineffective once the transaction has ended. These forms have been used years after the fact to commit fraud. We can help you check if your old Power of Attorney is still effective and help you terminate it. We also make sure that all new Power of Attorney forms contain a limiting clause so that they cannot be used again.
I’m buying a Condo. Is that the same thing as a house?
Yes, under New York’s Condominium Act, a Condo Unit is the same thing as real property and you will get a Deed showing your ownership of the Unit that must be recorded. You can buy Title Insurance just as you would for any other real property.
But, I’m buying a Co-Op. Does any of this apply to me?
The rules for Cooperative Apartments are different that those for other real property. When you purchase a Co-Op, you are actually buying shares of the corporation that own the building. These shares entitle you to the use of one of the apartments in the building. You are given stock shares and a proprietary lease at closing. These are not recorded, and, unlike a Deed, must be safeguarded as you will need the originals to sell your apartment. (If you have a mortgage, the bank will safeguard these items for you). We can offer you Leasehold Insurance, which protects you from any claims against your Co-Op shares. This works the same way as title insurance and is offered specifically for Co-Ops.
Do I still need that paperwork that my bank sent when I paid off my mortgage?
Yes! While many banks will record a Satisfaction of Mortgage directly, many will send you the original Satisfaction directly, and it is your responsibility to have it recorded. This is the only way to show that the bank no longer has a claim to your property. A lost Satisfaction can delay a closing for weeks, if not months. Make sure to bring all original satisfactions to a closing. These documents are easily lost and hard to replace! We can help you record these now, before they become an issue later.
Not sure if a Satisfaction was ever recorded? We can perform a title search to see if there are any liens against your property on the public records.
I refinanced a few years back. I had bad credit at the time and I remember signing a Deed to my spouse. How do I know who owns my property?
If you don’t have copies of everything that you signed, it would be best to order a Title Report before you sell your property. That way, there are no surprises that could delay a closing for weeks or months.
I am selling now. Will I have any closing costs?
Every time you sell real property or a Co-Op in New York state, you are subject to Transfer Tax. The amount of taxes varies by jurisdiction. Contact us to find out how much tax you will have to pay.
Deed Definitions – Joint Tenant / Tenants-in-Common / Tenants by the Entirety.
These terms are legal definitions that are on every Deed where more than one person or company owns a piece of real property. They all have very specific meanings and very different outcomes. Be careful which ones you choose.
Joint Tenant – This entitles each owner to 100% of the ownership of the property. All owners are needed to sell the property. When one owner dies, their entire portion of the property goes directly to the other owners, bypassing any Will or Estate that is put in place.
Tenants-in Common - This entitles each owner to a stated share of the property. If no percentage is stated, it will be assumed to be equal among all the owners. Each owner may sell their share of the property and if an owner dies, they can Will their share of the property to another person, and the ownership share will pass through their estate to their heirs.
Tenancy by the Entirety – This form of ownership is only available to legal spouses. It works the same as a joint tenancy with right of survivorship. Upon the death of one spouse, full ownership automatically transfers to the surviving spouse and bypasses any Will or Estate. This form is automatic for spouses unless another form is specifically stated. This form is chosen using the phrases, “his wife, “her husband,” “husband and wife,” or nothing at all. Once a married couple divorces, this form of ownership automatically changes to Tenants-in-Common.
Needs change over time. In all cases, if you want to change your form of ownership, you will need to prepare a new Deed. We can help you prepare and record this. Contact us today.
My Deed does not have any of these terms. How do I know which applies?
If the owners are legally married when they buy the property, then ownership is assumed to be a Tenancy by the Entirety.
In all other cases, ownership is assumed to be as Tenants in Common, with each owner given an equal share. If the owners later marry, this form of ownership does not change.
Needs change over time. In all cases, if you want to change your form of ownership, you will need to prepare a new Deed. We can help you prepare and record this. Contact us today.
Contact us with further questions or to protect yourself with title insurance.
