Understanding Title Insurance in New York
February 23rd, 2022 by Catherine Marqueses
Title insurance NY is a must for anyone who wants to buy a house in New York. It’s not just for people who don’t know how to read paperwork or are afraid of making mistakes. It’s also important for people who want to buy a second home or even an apartment, because it protects the lender — and therefore you — when the seller doesn’t actually have title to the house. You can purchase this insurance from a title agency like MacGregor Abstract. To obtain title insurance NY, you need to contact a title agency like MacGregor Abstract.
New York Title Insurance: If you’re buying a property in New York, you must have this coverage to transfer ownership from the seller to you. This type of coverage ensures that if there’s any issue regarding ownership at closing, your lender will be protected by your policy as long as they go through with the sale. The costs can vary widely depending on the value of the house and where it’s being sold.
Certificate of Title: This form of coverage protects your lender if there’s an issue regarding title or occupancy at closing. It essentially acts as a cash advance against the purchase price so they can close on the property while they sort out any questions about ownership or occupancy.
The title insurance you need “assures that the person who actually owns the property is the person who’s listed on the title” of the property. It protects you against others who might try to take your home through a legal process.
If you buy a house in New York, title insurance is especially important if there’s more than one owner. If you’re not sure whether the sellers are listing their deeds with a title company, check with the town clerk in your area. If they don’t have an office in town, call or visit your local sheriff’s office.
If you’re buying from a private seller, ask if they have a title company and see if they will open it for you.
If your homeowners’ association files a complaint about a neighbor’s construction project, for example, and threatens to sue for violating its rules, the association can only do so if it has title insurance. This type of insurance is often called “deed of trust” insurance because it indemnifies owners against claims from their neighbors (or even other owners in their own complex) for violations of covenants or restrictions contained in their deeds.
Title insurance is a type of property insurance that protects you if the seller doesn’t have property title or if someone sues to get paid for damages.
It’s not always necessary to buy title insurance, and it’s not something you should be afraid of. But, it is a good idea to buy it when you’re buying a house in New York state, because title problems are more common there.
Here are some of the problems that can happen and how title insurance can help you:
Your loan lender did something wrong. If your loan comes from a bank or other financial institution, it’s possible that the lender could lose your paperwork (a “scored” mortgage) after you close on the house, causing you problems down the road. Title insurers fight for the rights of homeowners like this one and for people who buy refinances from a different company.
The real estate agent messed up. If the real estate agent misrepresents the condition of the property (like saying it has more bathrooms than there really are), then you might not get your full purchase price back if you sell later on.
The mortgage servicer messed up. If the servicer is supposed to handle everything related to your mortgage payments and records, but they mess up for example,