Recently, we have seen more claims arising out of no consideration transfers in what appears to be a “flip” situation with a straw buyer.

Example: A Grantor in financial distress conveys title for no consideration to a Grantee who then within one year transfers the property to a bona fide purchaser for value. Subsequently, the original Grantor attacks the conveyance on the basis of fraud and misrepresentation. The original Grantor believed its Grantee was assisting him in getting out of foreclosure and that he can remain in his house.

In any situation where there is a no consideration (non familial) deed within one year of a subsequent transfer or mortgage that we are being asked to insure, we require the following:

The original grantor must be run for judgments, liens and bankruptcy searches.

The original grantor must join in the conveyance to the bona fide purchaser for value.

Copies of two forms of identification will be required for all parties.

Please note that this is a separate and distinct requirement from the Home Equity Theft Protection Exceptions that were set forth in a previous memo.

Please use caution and due diligence in such situations and contact company counsel with any questions or concerns.

Date: Sept. 19, 2007
Re: Additional Mortgage foreclosure requirements

On August 1, 2007 the following changes were approved by Governor Spitzer enacting a new Section 1320 of The Real Property Actions and Proceedings Law (RPAPL) and amending Section 3215(g)(3)(iii) of the Civil Practice Law and Rules (CPLR).

Section 1320 RPAPL: any foreclosure action commenced on or after August 1, 2007 that affects a 1-3 family residence or up to three individual residential condominiums must contain the following language in the summons in bold face as follows:

NOTICE

YOU ARE IN DANGER OF LOSING YOUR HOME If you do not respond to this summons and complaint by serving a copy of the answer on the attorney for the mortgage company who filed this foreclosure proceeding against you and filing the answer with the court, a default judgment may be entered and you can lose your home. Speak to an attorney or go to the court where your case is pending for further information on how to answer the summons and protect your property. Sending a payment to your mortgage company will not stop this foreclosure action. YOU MUST RESPOND BY SERVING A COPY OF THE ANSWER ON THE ATTORNEY FOR THE PLAINTIFF (MORTGAGE COMPANY) AND FILING THE ANSWER WITH THE COURT.

No title may be insured through a mortgage foreclosure commenced on or after August 1,2007 foreclosing a mortgage on “residential property containing not more than three units” without this notice set forth above.

CPLR Section 3215 (g)(3)(iii)

The Section applies to default judgments based upon a defendant’s non-appearance against a natural person in actions for non-payment of contractual obligations. The amendment now extends this section to natural persons who are defendants in residential mortgage foreclosure actions.

When you are insuring out of a mortgage foreclosure commenced on or after August 1, 2007 on a one to three family residence, no title is to be insured if the judgment of foreclosure also contains a judgment against a natural person guarantor that was based upon a default by the guarantor unless the additional notice required herein was given to the natural person guarantor. The additional notice requires that at least 20 days prior to the entry of the default judgment, a copy of the summons be mailed to the defendant by first class mail at his place of residence. his memo supersedes our memos of July 17, 2003 and December 14, 2005. Claim activity dictates the need for tightening our examination requirements.

Date: Sept. 5, 2007
Re: Examination Standards

This memo supersedes our memos of July 17, 2003 and December 14, 2005. Claim activity dictates the need for tightening our examination requirements.

1. Purchases and Mortgages on other than 1-4 family residence

When you are requested to issue a policy in connection with a purchase or in connection with a mortgage on property other then a 1-4 family residence we will require that a full search be done. A full search means that the chain of title is examined back to a deed recorded more then forty years ago which appears on its face to be a non-family bonafide conveyance for a valuable consideration.

2. Mortgage Refinances

When you are requested to issue a policy in connection with a mortgage refinance and the underlying property is an improved 1-4 family residence the following requirements apply:

    a. You may assume title good in the grantee of the last insured deed if that grantee:
         1. Purchased for a valuable consideration;
         2. The deed to that grantee has been on record for at least two years; and
         3. That when that grantee took title there was an institutional purchase money mortgage. In such              a situation the prior chain need not be examined, prior owners need not be run however prior              open mortgages must be turned out.

     b. Regardless of the above, if the policy to be issued exceeds $2,500,000 a full search as           described above must be run and high liability approval must be obtained.

3. Restrictive Covenants, etc.

a. When doing an owner's policy, or an owner's policy with a simultaneous lender's policy, all covenants, restrictions, easements and agreements must be set forth in the report and requests for affirmative insurance will be considered on a case by case basis.

b. When insuring a mortgage refinance, instead of searching for such instruments recorded prior to the last insured deed, the policy may set forth the following exception:

"Covenants, restrictions, easements, agreements and similar instruments of record, if any, but policy insures that notwithstanding said instruments the existing improvements on the premises may remain undisturbed, that the use of the premises for residential purposes will not be impaired and provision for the forfeiture or reversion of title, if any will not be enforced".

c. Any request to affirmatively insure against the enforcement of any restrictive covenant involving proposed new construction, against the enforcement of a type of use, or to insure that existing violations may continue undisturbed must be referred to this office for consideration and approval.

Date: May 29, 2007
Re: Survey Coverage under the new policies

Please be advised we have recently received numerous questions concerning the new title policies adopted 6/17/06 and effective 5/1/07 with respect to the survey coverage provided therein.

The new Loan Policy contains survey coverage within the body of the policy jacket under Paragraph 2C.

Since the survey coverage is automatic per paragraph 2C of the loan policy, no exception as to "any state of facts an accurate survey may show" needs to be mentioned in the title report or policy.

Please be sure to continue to have the survey affidavit signed by the owners at closing when a loan is being insured and a survey has not been read into the report and policy.

As for a fee policy, a survey is always required in order to omit the "any state of facts" exception. The new fee policy does not contain any survey coverage absent an insurable survey.

Please contact company counsel should you have any questions.

Date: May 16, 2007
Re: Disposition of Open Mortgages

It has recently come to our attention that occasionally open mortgages are being omitted without sufficient proof of payment. The following are acceptable procedures for clearing open mortgages:

You may obtain a Letter of Indemnity from the prior insurer of the current fee owner or a copy of the policy insuring the current fee owner issued by a participant in the Mutual Indemnification Agreement.
Under the Mutual Indemnification Agreement, obtain a copy of loan policy omitting the subject mortgage along with corroborating proofs of payment (ie: payoff letter, copy of payoff check, proofs of mailing)
Ancient mortgages may be omitted if they meet the criteria set forth in NYSLTA Recommended Practices M-7. (See our website)
If a mortgage is not in foreclosure you may take an escrow deposit of no less than double the face amount of the mortgage.
A satisfaction of mortgage presented at the closing along with the original note and mortgage.
Under no circumstances may a mortgage be omitted based solely upon information contained in a credit report.

Should you have any concerns or questions, please contact company counsel.

Date: 4/4/2007
Re: TIRSA Rate Manual Section 14 Refinance and Subordinate Mortgages Revisited

Amended Section 14 of the TIRSA Rate Manual dealing with refinance and subordinate mortgage loans has been in effect since February 15, 2006 yet we still get questions as to its applicability to specific situations.

Section 14 does not apply to construction loans. They are covered by Sections 12, 13 and 16 of the Rate Manual.
The first major change is a change in the breakpoint between the 50% rate and the 70% rate. It is now $475,000.00.

If the mortgage being insured is $475,000.00 or less then the rate for the amount of insurance up to the eligible discount amount is 50% of the applicable full loan rate and the rate for the amount of insurance above the eligible discount amount is 100% of the full applicable loan rate.

If the mortgage being insured is greater then $475,000.00 then the rate for the amount of insurance up to the eligible discount amount is 70% of the applicable full loan rate and the rate for the amount of insurance above the eligible discount amount is 100% of the full applicable loan rate.
Eligibility for a discounted rate is no longer dependant on whether there is prior fee title insurance or mortgage title insurance.

The criteria determining the amount of the proposed mortgage insurance to be given a discounted rate is now based on matters that are fully discoverable in the public records. These include the consideration paid by the current mortgagor for the premises and the face amount of mortgages made by the current mortgagor. You are to use the greater of the amount of the consideration paid for the mortgagor's interest in the premises or the aggregate face amount of all mortgages made by the proposed mortgagor affecting the premises to be mortgaged. Only consider transfers made to or mortgages made by the current mortgagor within the ten years immediately proceeding the date of application for the loan policy. However, older mortgages are to be considered if they are the subject of a consolidation agreement made within the past ten years.
Section 14 requires that there has been no change of ownership. No discount will be given unless there is a transfer between husband and wife whereby one of the parties is removed from the deed. If one or more persons are added to title that constitutes a change of ownership and there is no eligibility for a discounted rate.
Section 14 provides that the consideration paid by the proposed mortgagor for the premises is to be computed based on the amount of transfer tax paid, or the consideration shown on the deed to the mortgagor, or otherwise shown in the public records. (the amount of consideration is shown on the RP-5217 which is available on ACRIS) Keep in mind that it is the intent of Section 14 of the TIRSA Rate Manual to give the largest discount possible.
If a mortgage has been paid off but the satisfaction of mortgage has not yet been recorded that mortgage is not an existing mortgage and is not to be considered.
A mortgage made more then ten years ago but consolidated with other mortgages is to be considered as being made within the past ten years if the consolidation agreement has been recorded within the past ten years. If mortgages have been consolidated within the past ten years you are to use the consolidated amount of those mortgages instead of the face amounts of the individual mortgages.
Mortgages that were made by someone other then the current owner but which have been consolidated by an agreement made by the current owner within the past ten years will be considered mortgages made by the current owner.
Section 14 requires that the new mortgage describe the same property as in the instruments being considered for establishing eligibility. If the new mortgage covers all or some of the property in the instruments upon which eligibility is being considered we will allow eligibility however if the new mortgage contains any additional property then no discount will be permitted.
Every mortgage to be insured other then a purchase money mortgage or a construction loan is to be considered as potentially eligible for a discounted premium.

Refer your questions to this office; we will do our best to answer them.

Date: 4/3/2007
Re: TIRSA Rate Manual, Fourth Reprint Rates & Endorsements -
THIS MEMO IS EFFECTIVE MAY 1, 2007

In connection with the filing of the 2006 ALTA policies TIRSA has filed the Fourth Reprint of the Rate Manual with the Insurance Department.

The basic rates remain the same, however we specifically call your attention to our Rate Deviation filing of June 18, 2006.

Both the Rate Manual and our Deviation Filing appear on our website at www.washtitle.com. The Title Rate Premium Calculator on the website has been modified to reflect the deviation, i.e., the 15% reduction of fee title premiums on Owner's policies of less then $1,000,000.00.

The Rate Manual contains all the Rates and Rules. It also contains sample forms of the 1992 policies, the 2006 policies and sample endorsements for use with each category of policies.

Endorsements for use with the 1992 policies that you must issue in connection with titles that close prior to May 1, 2007 may be obtained in the usual way. Endorsements for use with the 2006 policies will soon be available for downloading from our website. That will be the only source.

Once again we specifically call your attention to Section 14 dealing with the discounted rate for Refinance and Subordinate Mortgages. Strict compliance with this section is mandatory. A separate memo on this subject will be forthcoming.

Date: 3/27/2007
Re: ALTA 2006 Policies - THIS MEMO IS EFFECTIVE MAY 1, 2007

The New York State Insurance Department has approved, effective May 1, 2007, TIRSA's filing of the 2006 ALTA Owner's Policy and the 2006 ALTA Loan Policy with revised standard New York endorsements and the ALTA 2006 Short From Residential Loan Policy with TIRSA amendments. These will replace the 1992 policies that are presently being issued. The 1992 policies may not be issued for closings which take place on or after May 1, 2007.

Packages of numbered hard copies of both the owner's and loan policies will be delivered to you in time for use with your closings which take place May 1st or thereafter.

Endorsements for the 1992 policies may be obtained and used in the same manner as you have been currently doing. The present endorsements may only be used for 1992 policies. All endorsements for the 2006 policies are new although the coverage of most of them is the same as the previous endorsements. The new endorsements will be downloadable from our website www.washtitle.com.

A detailed comparison of the differences in coverage between the 2006 policies and the 1992 policies may also be found on our website. Follow the prompts.

The issues that will probably come up most often are:

The Loan Policy as modified by the standard loan policy endorsement provides for survey coverage for 1-4 family dwellings and vacant land. There is no charge for this coverage. No survey endorsement is needed.
The Limited Liability Company and Limited Liability Partnership endorsement is no longer required - - the coverage is within the definition of "insured" in the policy. There is no additional charge for this coverage.
The Last Dollar endorsement is no longer necessary. The provision of the 1992 ALTA Loan Policy that resulted in its need does not appear in the 2006 ALTA Loan Policy. There is no additional charge for this coverage.
The covered risk regardg cedritor's rights is expanded to cover transactions occurring prior to the transaction creating the interest being insured. (covered risk 13(a) of the Loan Policy and 9(a) of the Owner's Policy).
A pending disbursements clause similar to the language set forth in Part 1 Section 1(n)(a) of the revised TIRSA Rate Manual must be set forth in Schedule B in every policy insuring a construction loan.

Please contact us with any questions you may have.

Date: 2/28/07
Re: Escrow Service Charges and Escrow Procedures Generally

     1) Washington Title's form of Escrow Agreement provides for the collection of an initial escrow service charge and annual service charge equal to the initial service charge. This applies to both escrows to pay and escrows to hold.

You are authorized to make an initial and annual service charge of $75.00.

Any larger charge will be considered excessive.

     2) Please provide your closers with an adequate supply of our form of escrow agreement. (A supply is available from this office).

     3) Instruct your closers to be sure to provide the depositor with a copy of BOTH SIDES of the signed escrow agreement. It is a common error for closers to photocopy the front and ignore the back which contains all the terms and conditions.

Date: 1/24/07
Re: Home Equity Theft Prevention Act ( Please Click Here )

Date: 11/29/06
Re: High Liability - Revisited

This memo supersedes our prior memos on this subject and modifies the provisions of Paragraph 6.C (1) of our Underwriting Agreement.

Effective immediately approval of the issuance of title insurance policies having a "high liability" must be obtained in the following cases:

1) Approval is required if the amount of owner's or lender's policy exceeds $2,500,000.00

2) Any policy, regardless of amount of insurance, insuring land under water, or land in the bed of a street.

This approval should be obtained prior to issuing your title report. As soon as is practicable send us a copy of the abstract, survey and proposed title report along with the completed request form. Obtain photocopies of the request form as needed.

Notwithstanding the above, whenever policy liability exceeds $2,500,000.00 there must be a current full search. This applies to all examinations, including refinances.

Date: 12/14/05
Re: Covenants, Restrictions, Easements and Agreements

This memo establishes this company's standards regarding reporting Covenants, Restrictions, Easements and Agreements, etc.

When issuing an Owner's policy (even if the examining standards permit a short period search) the public record of covenants, restrictions, easements, agreements and similar instruments must be set in the title report.

An exception which relates to restrictive covenants and agreements and which states "none in period searched" is meaningless, inappropriate and does not protect us in any way.

When issuing a simultaneous Lender's policy along with an Owner's policy the same covenants, restrictions, easements and agreements must be set forth in the report and requests for affirmative insurance will be considered on a case-by-case basis.

When insuring a mortgage refinance, and there has been no change of ownership, instead of searching for such instruments recorded prior to the last insured deed the policy may set forth the following exception:

"Covenants, restrictions, easements, agreements and similar instruments of record, if any; but policy insures that notwithstanding said instruments, the existing improvements on the premises may remain undisturbed, that the use of the premises for residential purposes will not be impaired, and no provision for the forfeiture or reversion of title will be enforced".

Any request to affirmatively insure against the enforcement of any restrictive covenant involving proposed new construction, against the enforcement of a type of use or to insure that existing violations may continue undisturbed must be referred to this office for considerations and approval.

Date: 12/14/05
Re: Examination Standards For Improved One-to-Four Family Residential Property

This memo supersedes our memo of July 17, 2003 and establishes this company's current examining standards.

When you are requested to issue a policy in connection with a resale or a mortgage refinance and the underlying property is an improved one-to-four family residence the following requirements apply:

You may assume title good in the grantee of the last insured deed if the grantee

purchased for a valuable consideration,
the deed to that grantee has been on record for at least two years, and
that when grantee took title there was an institutional purchase money mortgage executed as part of the acquisition transaction.

In such a situation the prior chain need not be examined, prior owners need not be run and prior mortgages need not be turned out unless recited in a later deed, mortgage, or other instrument as having been assigned to the purchase money mortgagee or otherwise modified.
Some caveats to remember

If there is no institutional purchase money mortgage executed by the referred to grantee a full search must be run.

None of the above applies to commercial property, vacant land, or residences comprised of more than four units.

Regardless of the above, if the policy to be issued exceeds $2,000,000.00 a full search (with all the trimmings) is required

Date: 12/14/05
Re: High Liability

"See 11/29/06 update"

Date: August 25, 2005
Re: Duplicate Original Documents

Too often the City Register and metropolitan area County Clerks have been losing or misplacing original documents that have been submitted for recording. To avoid the difficulty of recreating documents and finding the parties to re-execute them we urge you to keep a copy of the deed and mortgage in your file and to persuade the buyer's or lender's attorney to keep an executed duplicate original deed in his or her file.

With respect to pay offs of existing mortgages in addition to copies of the pay off letter, forwarding letter, payoff check, payoff indemnity and overnight tracking information you should also include a copy of the HUD-1.

Date: August 25, 2005
Re: Bankruptcy (Reminder)

The standard discharge in bankruptcy does not remove a creditor's recorded lien against the debtor's property. This discharge only terminates the debtor's obligation to pay the debt. After the discharge the lien remains against the property and can be enforced by the creditor if, as and when the property passes to a subsequent owner.

Before we will insure a sale or re-finance free of the liens the debtor must proceed under Section 150 of the New York Debtor & Creditor Law and obtain and file an unqualified discharge of the specified liens.

Date: 07/21/05
Re: Onondaga Indian Land Claim

The Onondaga Indian Nation has laid claim to a vast tract of land in central New York State running from the St. Lawrence River to the Pennsylvania border. The area, though vaguely described, covers all or part of 11 counties, to wit: Broome, Cayuga, Chenango, Cortland, Jefferson, Lewis, Madison, Onondaga, Oswego, Tioga and Tompkins. (See approximation map attached). This memorandum sets forth our underwriting position with respect to insuring title within the claimed area. With respect to 1-4 family residents only, this company will insure mortgages made to institutional lenders and will insure bona fide purchasers for value. The title report and the loan policy must contain the attached Onondaga Indian Claim exception with its included affirmative insurance. We will not insure a present owner who is seeking to insure previously uninsured property. You may not insure any other type of property without the express permission of this office. You may not insure any transaction if the present owner is one of the following entities:

The State of New York
Onondaga County
The City of Syracuse
Honeywell International, Inc.
Trigen Syracuse Energy Corporation
Clark Concrete Company, Inc.
Valley Realty Development Company, Inc.
Hanson Aggregates North America

The specific exception with the included affirmative insurance is attached.

Onondaga Indian Claim Exception (with affirmative insurance) The premises lies within the area claimed by or on behalf of the Onondaga Indian Nation and such rights, title or interests that may be established in favor of said Indian Nation or members thereof are excepted from coverage. Notwithstanding, this policy insures against loss or damage arising from a final unappealable decision, in favor of the claimant, adversely affecting the insured's title or impressing a lien on the premises. In addition, this policy insures against loss or damage by reason of the unmarketability of title (as hereinafter defined) resulting from said claim. With respect to said claim, the offer of this company, or any other licensed title insurance company, to insure at its regular rates the title to the said premises in the manner herein set forth shall be conclusive evidence of the marketability of the title hereby insured. The company agrees upon request of any mortgage or vendee of the insured or the mortgagee of such vendee, to issue its policy containing the same affirmative coverage set forth above but subject to the same condition.

This company shall not be liable for any loss suffered by the insured by reason of a proposed purchaser, mortgage or assignee rejecting title or refusing to make a loan or refusing to purchase the mortgage by reason of the Onondaga Indian Nation claim against the premises provided that insurance is available as above described.

Date: 07/21/05
Re: Shinnecock Indian Land Claim

The Shinnecock Indian Nation has laid claim to a vast tract of land comprising part of the Town of Southampton in Suffolk County. The area affected is bounded west by the Shinnecock Canal, north by Great Peconic Bay, south by Shinnecock Bay, and east by a somewhat indefinite line that runs from the head of Heady Creek north to the southeasterly point of Bullhead Bay. This memorandum sets forth our underwriting position with respect to insuring title within the claimed area. With respect to 1-4 family residents only, this company will insure mortgages made to institutional lenders and will insure bona fide purchasers for value. The title report and the loan policy must contain the attached Shinnecock Indian Claim exception with its included affirmative insurance. We will not insure a present owner who is seeking to insure previously uninsured property. You may not insure any other type of property without the express permission of this office. You may not insure any transaction if the present owner is one of the following entities:

The State of New York
The County of Suffolk
The Town of Southampton
Shinnecock Hills Golf Club
National Golf Links of America
Parrish Pond Associates, LLC
Parrish Pond Construction Corporation.
PP Development Associates, LLC
Sebonac Neck Property, LLC
Southampton Golf Club, Inc.
409 Montauk, LLC
Southampton Meadows Construction Corp.
Long Island Railroad or Metropolitan Transit Authority
Long Island University

You may not insure any transaction affecting land withing the claim area described as:

land shown on “Map of Parrish Pond Associates”, filed April 20, 2001 as Map No. 10609
land described in Liber 12280, page 230
land described in Liber 12372, page 587
land lying within the bounds of the Shinnecock Hills Golf Club
land lying within the bounds of the National Golf Links of America
land lying within the Southampton Golf Club
land now or formerly a part of Long Island University or Southampton College
land lying within the Shinnecock Indian Reservation.

The specific exception with the included affirmative insurance is attached.

Shinnecock Indian Claim Exception (with affirmative insurance) The premises lies within the area claimed by or on behalf of the Shinnecock Indian Nation and such rights, title or interests that may be established in favor of said Indian Nation or members thereof are excepted from coverage. Notwithstanding, this policy insures against loss or damage arising from a final unappealable decision, in favor of the claimant, adversely affecting the insured's title or impressing a lien on the premises. In addition, this policy insures against loss or damage by reason of the unmarketability of title (as hereinafter defined) resulting from said claim. With respect to said claim, the offer of this company, or any other licensed title insurance company, to insure at its regular rates the title to the said premises in the manner herein set forth shall be conclusive evidence of the marketability of the title hereby insured. The company agrees upon request of any mortgage or vendee of the insured or the mortgagee of such vendee, to issue its policy containing the same affirmative coverage set forth above but subject to the same condition.

This company shall not be liable for any loss suffered by the insured by reason of a proposed purchaser, mortgage or assignee rejecting title or refusing to make a loan or refusing to purchase the mortgage by reason of the Shinnecock Indian Nation claim against the premises provided that insurance is available as above described.

Date: June 29, 2005
Re: Yonkers Tax Increase

The Yonkers Transfer Tax is increased to 1.5% effective on any deed delivered on or after July 1, 2005.

The new RPT form with the increase is not yet available. The old RPT form should be used with the tax rate changed in pen. This is the same procedure used the last time the Yonkers tax was amended.

Date: June 29, 2005
Re: Incoming Requests for Letters of Indemnity

There have been several incidents recently where, in response to a request for clearance, the agent of the prior insurer has sent our agent a copy of the "Request for Letter of Indemnity" but we have never received the actual letter of indemnity from the underwriter. Omitting exceptions based only upon receiving the other agent's request to its underwriter is dangerous - for whatever reason either the request doesn't get to the underwriter or the underwriter doesn't act on it.

Every effort must be made to receive the letter of indemnity or receive assurance from the underwriter (not the agent) that the letter is forthcoming before omitting the pertinent exception(s).

Date: June 2, 2005
Re: Property Under Foreclosure

This will clarify our requirements for insuring title when the premises are subject to a current foreclosure action.
A) When title is to be acquired from the Referee in the foreclosure action:

1.      The request for continuation at the time of closing must include a request to review the foreclosure action to determine if any proceedings have taken place since the original examination;
2.      The Referee's Deed must be delivered at closing;
3.      The Referee's Report of Sale, with proofs of publication and posting of the Notice of Sale, must be presented at closing for filing and must be reviewed at the time of closing for compliance with the requirements of Section 231 of the RPAPL.
4.      Affidavit from the individual proposed insured or a principal of the proposed insured entity attesting that the foreclosed owner or any one related to the foreclosed owner is no longer in possession of the premises.

B) When title is to be acquired from the foreclosed owner, the mortgage paid off and the action terminated:

1.      A current pay-off letter must be obtained. If it is from the lender it must wet forth the legal fees as well as the usual pay-off figures and must be confirmed with both the issuer and the foreclosing attorney. If issued by the foreclosing attorney it must be confirmed with the issuer;
2.      If a Judgment of Foreclosure and Sale has been entered we require a letter from the foreclosing attorney stating that no sale date has been set, or, if a sale date has been set, a letter must be sent to the Referee at the conclusion of the closing advising the Referee of the cancellation or adjournment of the sale;
3.      A Stipulation must be delivered at the closing discontinuing the foreclosure action, canceling the Notice of Pendency and, if appropriate, vacating the Judgment of Foreclosure and Sale. In the absence of such a stipulation we will accept on unequivocal undertaking by the foreclosing attorney to accomplish the above within 30 days.

All of the above requirements result from situations where pay-off letters were incomplete and satisfactions weren't forth coming, and where Referee's conducted sales when the mortgage had already been paid off. (The right hand didn't know what the left hand was doing)

These procedures should prevent claims.

Date: 2/15/05
Re: NY State Department of Taxation and Finance
Contact for Mortgage Tax and Transfer Tax Information

In an effort to provide more efficient service, the Tax Department has established a new toll free telephone number to address mortgage recording tax (MRT) and NYS real estate transfer tax (RETT) questions. This new toll free number, 1 888 698-2914, connects directly to a new unit in the Tax Department's Taxpayer Contact Center (TCC). Beginning Monday, February 14, 2005, calls made to the Technical Services Division extension ((518) 457-0556) will automatically be transferred to the TCC line. Callers will receive a message with the new "888" number and well be asked to use that number in the future. The new TCC unit has been trained and will continue to receive training regarding frequently asked MRT and RETT questions. It is anticipated that TCC will be able to handle many routine calls, and the more difficult calls will be referred to the Technical Services Division. In addition to the new telephone number, a special email address has been set up for title companies and legal professionals to directly contact the Technical Services Division regarding more complex questions. The email address is NYSMortgageandTransferTax@tax.state.ny.us. Alternatively, complex questions may be faxed to (518) 435-2918. Emails and faxes should include a contact name, telephone number and details of your question. Once the information is reviewed it is generally necessary to obtain follow up information. If so, the response will be by email, fax or by telephone.

If an immediate response is required indicate at the top of your fax or email, "Closing in Progress". However be prudent - don't abuse this priority request.

Date: December 8, 2004
Re: Hospital Liens

Under no circumstances are you authorized to take an escrow to dispose of a Hospital Lien. The amount stated in the lien continues to accrue. In a recent matter a nominal $6,000.00 lien had grown to over $100,000.00.

You must obtain a current payoff letter, confirm the amount at closing and effect the payoff in the same manner as you would payoff a mortgage.

Date: November 22, 2004
Re: Co-op Sales / Estimated Income Tax

The attached memorandum from the New York State Department of Taxation and Finance to County Clerks/Recording Officers is forwarded for your information.

Form TP 584 has been revised and new Form IT-2664 has been created to deal with co-op transfers. The changes apply only to co-ops. There is no change affecting transfers of real property and the existing form of the TP-584 may continue to be used for all real property sales.

Date: July 20, 2004
Re: TP584 - Penalties and Interest for late payment - Nassau County

The attached letter from the Nassau County Clerk to the New York State Land Title Association describes a new impediment to the recording process. Hopefully, there will be a "speedy receipt turnaround" but I wouldn't hold my breath waiting for it to happen.

Regardless, you must adopt procedures to administer this new situation without further slowing the recording process.

Washington Title is not responsible for interest and penalties imposed on the seller. You may be if the tax is not paid within 15 days.

Date: July 6, 2004
Re: ACRIS 2.1: E-TAX FORMS

For all closings after July 3, 2004, New York City will require that the "New York City Real Property Transfer Tax Return" (NYCRPTT); the New York State "Combined Real Estate Transfer Tax Return, Credit Line Mortgage Certificate, and Certification of Exemption from the Payment of Estimated Personal Income Tax" (TP-584); and the "Real Property Transfer Report" (RP-5217NYC) be prepared and entered electronically on the ACRIS system. One of the enhancements made to the Cover Page application, is that the information on the completed E-Tax forms will be the basis for the preparation of the Cover Page. The E-Tax form tutorial on the ACRIS web site is a valuable tool. There are two methods of complying with the E-Tax form requirements. If at closing all of the E-Tax forms have been completed 100% correctly and have been signed, those forms may be submitted with the documents to be recorded in lieu of the currently used paper versions. If the E-Tax forms have not been completed 100% correctly, you may use the current paper versions of those forms, which must be signed, and then create the E-Tax forms post closing in your office. Because you will have the current paper version signed, the E-Tax forms need not be signed, but they must be printed out and submitted with the paper version. As to any closing occurring prior to July 3, 2004, if the papers are submitted to the Register's office prior to July 5, the E-Tax forms are not required, only the currently used paper versions of all forms will be required. As to any closing occurring prior to July 3, if the papers are submitted to the Register's office after July 5, the Register has agreed to accept the documents for recording without the E-Tax forms, but with the paper forms and only for a limited period. You must not delay in getting the papers submitted to the City Register's office. As the E-Tax form application has been designed, if the attorney for one of the parties prepares the forms, that attorney will be the only person who can access the forms, unless that attorney gives his login information (which is both his Customer ID and his Customer Keyword) to a third person who is intended to have additional access to the E-Tax forms. ONLY if the E-Tax forms have been printed out in the FINAL form (if not in FINAL form, the word DRAFT will appear across the printed pages), are 100% accurate and have been signed, may you take those signed E-Tax forms at closing. Please note, that if any information on the E-Tax forms is incorrect, even if the middle initial of the name of one of the parties is missing or incorrect, that E-Tax form may not be used. If not in FINAL form or if not 100% accurate, those E-Tax forms cannot be used, and they cannot be accessed unless you have both the original preparer's Customer ID and the Customer Keyword. The paper versions of the Smoke Detector Affidavit for 1 and 2 family dwellings; the Property Owner's Registration Form; and the Customer Registration Form for Water and Sewer Billing may continue to be used. If the ACRIS E-Tax version of these forms is used, they must be signed by the appropriate party(ies). Your closers must obtain either the completed and 100% accurate E-Tax forms, or the completed and 100% accurate paper versions of the necessary forms for recording. IT IS YOUR RESPONSIBILITY TO INSTRUCT YOUR CLOSERS REGARDING THE NEW PROCEDURES FOR CLOSING INVOLVING PROPERTY LOCATED IN NEW YORK CITY. Please have all of your personnel who are involved in the recording process review the E-Tax form tutorial on the ACRIS website. The ACRIS website is at :

http://www.nyc.gov/html/dof/html/acris.html

In many transactions, not all of the E-Tax forms will be required. The E-Tax program has been designed with that in mind. For example, you will not need the RP-5217NYC for the recording of a lease or assignment of lease.

If the parties do not deliver to you at closing all the necessary E-Tax forms, but only the paper versions of the forms, you will have to enter the data and prepare the E-Tax forms post closing. In that situation, you are permitted to charge for that additional service, at a price that you determine is appropriate.

Date: 6/25/04
Re: Richmond County Register's Office - Intake Department Procedures

This is a reminder that since April 30, 2004 all instruments offered for recording in Richmond County must be presented first to the Intake Department. There they will be reviewed. If complete they will be forwarded to the Examination Department for recording approval. Documents which are not complete and/or missing required attachments will be rejected at the Intake Department and will be rejected at the Intake Department and will be returned WITHOUT HAVING BEEN CLOCKED IN. This is very likely to result in interest and penalties being imposed when the documents are corrected and re-submitted.

Every effort must be made to see to it that documents are proper when first submitted.

Date: April 6, 2004
Re: Application of Mutual Indemnification Agreement

Enclosed is a copy of the latest compilation of interpretations of the application of the Mutual Indemnification Agreement by the participating companies.

I particularly call your attention to item #6. When Washington Title is the Indemnitor, the acknowledgment of liability is to be signed by an officer or authorized employee of the underwriter, not the agent. When Washington Title is the Indemnitee, the Indemnitor (underwriter) similarly must sign the acknowledgment of liability.

Note also that the signer's name must be printed below his or her signature.

Date: 12/3/03
Re: Discounted Rates for Refinance and Subordinate Mortgages

As you know, Section 14 of the Title Insurance Rate Service Association ("TIRSA") Rate Manual, filed with the Superintendent of Insurance of the State of New York, mandates a reduced premium when application is made for a loan policy and certain conditions exist. Section 14 contains the following provision: "In order to ensure consumer awareness of this Section, each Company shall include the following statement, in bold print, on the face of each application confirmation." IF THIS IS A REFINANCE WITHIN TEN YEARS, YOU MAY BE ENTITLED TO A REDUCED PREMIUM. CONTACT THIS COMPANY IMMEDIATELY FOR DETAILS. It has been alleged that there are instances where appropriate applicable rates have not been charged. It is your responsibility to assure that the discounted rate is charged if applicable. If the information justifying the discounted rate is not made available at the time application is made, it should become apparent from the abstract of title. Instruct your readers to be aware of this requirement and to advise the proper people in your organization to adjust the premium charges when necessary.

We are not accusing anyone of errors in establishing premium rates. The purpose of this memorandum is to remind and re-emphasize the requirements of Section 14 of the Rate Manual.

Date: 11/6/03
Re: Proof of Heirship

There have been several claims recently arising from the failure to properly establish the heirship of an intestate decedent. This usually results from our accepting affidavits of heirship that are incomplete, misleading or deliberately false. Effective immediately it is the policy of this company to require intestate succession to be proven in Surrogate's Court. All title reports must contain the following exception: "If title is to be acquired from the distributees of a record owner of the premises described in Schedule A, Company requires that heirship be proven in Surrogate's Court, either in an Administration Proceeding or a Probate of Heirship. Affidavits of heirship alone will not be acceptable proof." For your information Administration Proceedings are covered in Article 10 and Probate of Heirship in Section 2113 of the Surrogate's Court Procedure Act. Also, in those situations where you have raised a question about proof of death and heirship in the chain of title and have requested clearance from a prior insurer, the production of copies of affidavits will not be sufficient to justify omitting your exception. If the Mutual Indemnification Agreement is not applicable a Letter of Indemnity must be requested and received prior to closing.

Any request for deviation from these requirements must be approved by this office.

Date: 10/23/03
Re: Escrow Agreements

It is essential that you remind your closers that our form of Escrow Agreement is a two-sided document. The second page of the agreement contains several important provisions that we want the Depositor to be aware of. When giving the Depositor a copy of the Escrow Agreement the closer must giver him/her a copy of both sides.

Date: 9/26/03
Re: Mutual Indemnification Agreement

Effective September 24, 2003 Washington Title Insurance Company has signed a Mutual Indemnification Agreement with other underwriters. Currently nine licensed title insurance underwriters are participants in the arrangement. In addition to Washington the agreement has been executed by Chicago Title, Commonwealth, First American, Lawyers Title, Old Republic, Stewart Title, Ticor and Transnation Title.