The closing of a real estate purchase in New York is much different then any other state. Having a diligent, meticulous buyers attorney as well as a reputable NY Title Insurance company by your side is imperative to a successful, efficient and smooth closing.
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Buyers counsel will help ensure that all of your rights are protected. Most NY buyer attorneys will assist in all of the following:
1. Review the contract of sale with you
2. Negotiate the contract of sale with seller’s attorney when needed
2. Verify that all terms of the contract, dates, etc are complied with
4. Assist in dealings with bank counsel and facilitate the obtaining of the mortgage financing
5. Work hand and hand with the NY title insurance company in making sure clean title is being provided
6. Solidify the logistics of the closing with the NY title insurance company and other related parties to the transaction
7. Preparation of Closing Statement
One of the biggest differences in a NY real estate transaction is that a NY Title Insurance company typically does not disburse the proceeds from their settlement escrow account. In fact, the NY Insurance Department issued Circular Letter No. 18 back in December of 1992, prohibiting NY title insurance companies from issuing closing protection letters in New York State. The department states “that [NY Title Insurance companies] lack authority to issue a CPL to a lender insofar as that lender’s attorney is concerned, because its purported protection falls beyond the scope of the monoline title insurer’s license and writing authority that is exclusively confined to Section 1113 (a)(18) of the Insurance Law.” Since this ruling NY title insurance companies have been prohibited from issuing these letters for lenders counsel. Since the disbursements are not additionally insured by the underwriters via a CPL which is customary in many other surrounding states it is bank counsel that typically disburses funds pursuant to the settlement statement in a NY real estate transaction. If there is no bank involved then typically the buyer and seller counsel will handle disbursements out of their settlement trust accounts.
The mortgage tax in a NY purchase or refinance transaction is much higher then in most states. In fact, the majority of states do not even have a mortgage tax while the state of NY taxes the financing of home purchases heavily. In doing so the state has provided for a way for a borrower to not get taxed on the same money twice. A CEMA (Consolidation Extension Modification Agreement) allows a borrower to consolidate their new mortgage financing with their old mortgage if the old lender allows. Such transaction allows the borrower to escape paying the same tax twice and only be taxed on new money from the new mortgage. Please see our page on Breaking Down a CEMA.
*Please note pricing is subject to change for additional municipality fees
We provide comprehensive NY Title Insurance in all of the following Cities and Counties:
