Title insurance protects the seller if you don’t transfer ownership of a property correctly. If you don’t pay your taxes, the city, county or state might seize your property until you do. Title companies protect against this by paying the taxes before they can be seized. Since they’re paid in advance, they aren’t taxed and won’t affect the sale price of your house. Because of this, you need to purchase title insurance from a company like MacGregor Abstract. To obtain title insurance NY, you need to contact a title agency like MacGregor Abstract.
Depending on what county you live in and what kind of property you’re dealing with, title insurance may not be necessary at all. However, addresses in Manhattan and Brooklyn require it; titles are not issued for buildings that are located within 500 feet of a public park, school or street. The same is true for houses located within 1,000 feet of a park, school or street in New York City — but generally not farther than 3 miles from one unless there’s a public transit stop nearby.
Title insurance is also required for houses located within 2 miles of the New Jersey border or any portion thereof (such as across New York Harbor) if such boundary is marked by a public roadway, utility easement or other physical barrier.
A lot of people think that buying a home in New York where title insurance is mandatory means they don’t need title insurance. This couldn’t be further from the truth. Title insurance will help you avoid loss if there’s a buyer’s remorse or a dispute over ownership.
In New York, title insurance is required when a property changes hands by sale, gift, inheritance or foreclosure. If the seller fails to provide it, the buyers could find themselves unable to sell their property for at least 9 months, and possibly longer. It also protects you from losing your house if it’s repossessed by the bank or lender because of missed payments.
It’s important to purchase title insurance as soon as possible after buying a property to protect yourself from these risks.
Title insurance is an important part of the home-buying process in New York. It protects you from issues that can arise when a property changes hands.
These risks include:
Improper documentation. A deed for a property may not accurately reflect its current title or ownership. For example, if a previous owner took out a loan on the property, changed the locks and moved out, you might have to go through legal process to make sure the new owners are actually authorized to sell the property.
Lien on property. If a bank or other lienholder has secured financing on your property (through a mortgage or other means), that lien could prevent you from selling it until debt is cleared. Title insurance can cover this risk by making sure that what’s being transferred is legally yours.
The cost of title insurance varies widely depending on the state where you plan to buy and the type of interest rate you’ll get when you refinance your mortgage. There are two types of titles insurance: “full” coverage, which covers all issues; and “specialty” coverage, which limits coverage to certain issues or types of liens. Either type is a smart investment in your future home ownership — especially if your credit score is less than perfect.