New York Real Estate Practices

Attorneys are involved in all aspects of the residential and commercial sale. They negotiate the contract, hold earnest money deposits, review title certificates, draft conveyance documents and provide settlement services. Typically, each party to a transaction has an attorney representing their interests. In residential refinances, the attorney typically represents the bank only. In some jurisdictions, attorneys also act as Title Agents. However, there is no requirement for attorney involvement in the title search or the issuance of a title insurance policy.

There are no restrictions or requirements relating to cancellation fees.

Only the lender of record can release/discharge a mortgage.

Typical Deed is Bargain and Sale with Covenants against Grantor’s Acts. Typically Quit claim deeds are not insurable.

No (9-4-19)

There is no requirement to join a non title holding spouse.

Federal and NYS Lien Chart

Mortgage recording tax is due on all mortgages over $10,000.00 in all counties in New York on the amount actually secured by the mortgage. Some cities and counties impose additional mortgage recording taxes. The tax rates vary by amount of mortgage, location and use of the property. See NY Tax Law Section 250 et seq.

Who customarily pays for:
(a) Owner’s Policy: Buyer
(b) Transfer Tax & Recording Fee: Seller pays Transfer tax, Buyer pays fee to record deed and mortgage.
(c) Survey Charges: Buyer
(d) Closing/Settlement Fees: Typically Buyer/Borrower

There is no regulatory requirement for policy countersignatures. Typically authorized signature requirements are governed by the underwriting agreement.

Taxes are assessed by each municipality, typically due 9/1 of each year for tax year 9/1 to 8/31, but may vary. Taxes become due on the lien date, which is typically 9/1 but can be paid in installments. Please consult a local underwriter for information relating to real estate taxes on the subject property.

Searches are typically 40 to 60 years.

There are two Zones in NY. In Zone 1 (generally upper/western New York) a search fee can be charged. In Zone 2 (generally lower/eastern NY) the premium is all inclusive (i.e., it includes the search cost), but an additional search fee can be charged for multiple properties. Refer to TIRSA Rate Manual Part 1 Rules and Definitions Paragraph (F) and for Zones and counties. Premium rates for both Zones do not include the cost for municipal department searches.

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

Mortgage only.

The following are typical exceptions, subject to variation by county and local custom:

Rights or claims of parties in possession not recorded in the Public Records.

Easements or claims of easements not recorded in the Public Records.

Any state of facts an accurate survey would show.

Any lien, or right to a lien, for services, labor, material or equipment, heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

Taxes or assessments which are not recorded as existing liens in the Public Records.

Contact local Underwriter for local variations.

TIRSA 2006 ALTA policy and endorsements only as approved by the New York State Department of Financial Services and in the TIRSA Rate Manual.

Forms and rates are governed by the Title Insurance Rate Service Association, Inc. (TIRSA) Title Insurance Rate Manual, which is filed with and approved by the New York State Superintendent of Insurance. www.tirsa.org

Transfer tax is payable in every county and in some cities. The tax rate varies by location and use of the property. See NY Tax Law 1400 et seq.

Not available.

Nonresidents must compute the gain (or loss) and pay any estimated personal income tax due from the sale or transfer of certain real property, including cooperative units.

No witness required.