Today, we’ll highlight a deal to show you what title insurance costs, as well as what happens behind the scenes to streamline the closing process.

As the vaccine rollout continues, our general situation seems to be improving. The same can be said about development in NYC. After a year of very little activity, we are starting to see developers come back out and transact.

Consider the following deal.

The Deal

Acquisition of a Manhattan property for $8.25 million with a loan of $8 million

New York County (Manhattan)

Fee Policy $28,244
Loan Policy $6,866
Title Fees: $1,000+
NYS Transfer Tax: $53,625
NYC Transfer Tax: $117,563
Mortgage Tax: $185,625
County Recording Fees: $750+
Title Grade: B

Cornerstone Insight

This property had a couple of very old mortgages that were paid, but the satisfactions were not properly recorded by the county clerk, which resulted in an incomplete mortgage chain.

Title companies can spend an exorbitant amount of time trying to complete the chain by tracking down previous parties for documentation. However, this issue can be solved by using a simple title practice—the ancient mortgage affidavit. A mortgage against a prior owner (with no relationship to the current owner) that has been on record for 12 years past the maturity date can be considered an ancient mortgage, which completes the chain. This simple affidavit can resolve the issue without tracking down prior mortgages or bringing an action in court to remove the lien from the record judicially. Alternatively, where a mortgage is not “ancient,” based on its age or privity with the current owner, the no-demand affidavit is a less-common option that has been used as a curative measure on a case-by-case basis.

Bottom line: We can often find a simpler, faster way to solve a complicated issue.

If you have any questions about ancient or missing paperwork or title insurance, or if you would like to discuss an upcoming or potential transaction, please contact us.