Dale Siegel interviews Jody Fay, Counsel to Washington Title Insurance Company.

1.What is title insurance?

     Title insurance is an insurance policy that insures a buyer of real estate that he/she has good title to the premises free and clear of liens that would be objectionable to a bona fide purchaser for value. It is good as long as

the person owns the premises.

2.Why do I need it and how do I get it?

     Usually attorneys representing buyers of real estate order the title search which then, once cleared to close, becomes a final Title Policy of Insurance. In order to insure that one has clear title to a piece of property, title

insurance is required.

3. What information is in the report on me?

     The buyer and seller of Real Property are searched by name for any judgments and liens, bankruptcy filings and terrorist activities.

4. What information on the property is in report?

     The property is searched back for 40 to 60 years and all convents, restrictions, easements, mortgages and deeds are searched on the property during this time period.

5. What are the fees? Is it regulated?

     The title insurance premiums and any special endorsements are

regulated by the Insurance Department of New York State or the Insurance Department where the policies are being issued. The premiums charged are

based upon the amount of insurance requested. For example, an owner’s policy would be insured for the fair market value of the property which should be

the purchase price. A mortgage policy would insure the face amount of the mortgage being taken out at the closing. The Owner’s policy is for

the buyer and the mortgage policy id for the lender.

6. Do I need it for all properties?

     Yes! Lenders require a mortgage policy in NYS on any property they issue a first mortgage lien on and an owner should always purchase an owner’s policy when purchasing real property, commercial or residential.

7.Do I need title insurance if I buy a coop?

     No. When you buy a coop, you buy shares of stock in a corporation not real property.Therefore you do not need title insurance. That is why buying a coop is less expensive than a condo.

8. When I refinance do I need it again?

     You – as the owner – do not need a new policy.However, every lender on a refinance requires a new mortgage policy; even when you are using the exact same lender. On refinances within ten years of the last transaction, the homeowner is entitled to a reduced rate for the mortgage title premium.

9. If I do not have a lawyer how do I get it

     First, you should always have a lawyer representing you on a

purchase transaction.If you are simply refinancing your mortgage, you might not need a lawyer and the bank attorney or bank can order the title report for

you.

10.Do I get a copy of the title policy?

     Yes.When you buy a home or condo, you get a copy package of all the closing documents, deed mortgage and many other documents.You will also get a copy of the title policy.You should keep it with your important papers.You will need this info when you go to sell or refinance the home.Jody Fay is Senior Underwriting Counsel to Washington Title Insurance Company in Floral Park, New York where she serves as counsel to over 80 agents throughout New York.State. Ms. Fay has 15 years experience in real estate both commercial and residential, title and transactional. Ms. Fay teaches at the paralegal program at Westchester Community College, and is also chair of the Women’s Bar Association of the State of New York’s Real Property Committee. She can be reached at jody@washtitle.com