We have been continuously monitoring the situation involving the cyber security intrusion that shut down access to the Suffolk County Clerk’s office on September 8, 2022. Unfortunately, while the Clerk’s office has acknowledged the serious impact that this closure has caused to the Real Estate Industry, there is no definitive timeline to restore access to complete searches or record documents.

As you may know, the Suffolk County Clerk’s Office experienced a cyber-security intrusion on September 8, 2022, that has resulted in multiple computer systems being shut down. As a result, examiners in Suffolk County are currently unable to conduct searches of the Suffolk County land records, Suffolk County Clerk’s docket and other databases. Additionally, at the present time, it is not possible to record documents with the Suffolk County Clerk.

This week we wanted to bring your attention to a very interesting 2022 Second Department Court decision which ultimately enforced a forged deed based on the controlling provisions of New York Partnership Law § 51. A summary of the case facts are set forth below:

We wanted to take this opportunity to revisit the requirements for an individual to unilaterally sever an existing Joint Tenancy interest in Real Property. In the recent case Harmon v. Misholy, 2022 NY Slip Op 22102, decided April 8, 2022, posted at https://www.nycourts.gov/reporter/3dseries/2022/2022_22102.htm, the Respondent was a tenant under a certain lease that had been executed, via a POA, by one of the Joint Tenant owners on a parcel of real property in Suffolk County.

This week we wanted to draw your attention to a recent trend that has come to our attention whereby a Real Estate Broker and Homeowner enter into a Homeowner Benefit Agreement (HBA) related to the future listing and sale of a particular Property. The basic concept of the HBA is that the Broker would provide an up-front cash payment to the homeowner in return for a future exclusive right to act as the listing agent when the owner decides to sell their property.

The below case discusses the priority of a " Lien for common charges" filed against a Non-Residential Condominium Unit where the applicable Condominium Declaration and By-Laws specifically granted priority of the Common Charge Lien over and above that of any Commercial Mortgage on the Unit. The team thought this would be a good case for you to review as it highlights the importance of closely reviewing your Condominium’s governing documents when evaluating Common Charge Lien priority for a Non-Residential Condominium Unit.

The following information is in reference to the TOEPP (Extended Policy Protection). This extended protection is available for 1 to 4 family dwellings, as well as condominiums. The fee for this extended coverage is 120% of the straight fee premium and it lasts the lifetime that your client owns the property. 

Today we wanted to draw your attention to an issue we have been seeing more and more of these days. The facts in the below case (West 81st Garage, LLC v. New York City Department of Buildings; citations listed below) revolved around whether signage, installed on a property without permits, could be “grandfathered” in based on similar signage which was installed prior to a 2019 change to Section 3 of NYC Local Law 28.

We wanted to take this opportunity to remind you of a change in the way the NYC Department of Finance (DOF) assesses Restored Real Estate Taxes after a particular Owner (the “Entitled Owner”) is no longer eligible for a recognized Exemption. As an example, in the past, if a property was benefitted by a Veteran’s Exemption and the Entitled Owner died (assume for this example that the Entitled Owner was not married), the Veteran’s Exemption benefitting the Property would terminate as of the Entitled Owner’s date of death and DOF, upon being advised of the Entitled Owner’s death, would retroactively assess the Restored Taxes commencing in the tax period in which the date of death occurred.

We wanted to take this opportunity to remind you of the importance of properly ordering a Title Read Letter from the NYC Department of Environmental Protection (DEP) to ascertain the status of the Seller’s Water/Sewer account prior to Closing title on your transaction. As you likely know, DEP has restricted 3^rd party, non-owners’ access to on-line Water/Sewer account information. Title companies can no longer obtain copies of prior DEP invoices or billing period information to assist you with your adjustments or account status inquiries.

Today we wanted to draw your attention to a recent case which highlights the importance of the specific language you use in your contracts to define the Purchaser’s and Seller’s respective obligations regarding post-closing adjustments for real estate tax refunds. The relevant facts of 69 Pinehurst LLC v. Sixty Nine Pinehurst Avenue Associates LLC, 2022 NY Slip Op 30681, decided March 1, 2022 are described below.

Criminals have become more knowledgeable about our business and have learned how to take advantage of a busy real estate market. While we have all seen instructions on how too prevent wire fraud, below are a few tips and reminders so we may all stay vigilant.

Below is a recent court case involving an unsuccessful title insurance claim arising out of litigation over use and ownership of a driveway; a situation your clients would certainly like to avoid if they are sharing a driveway with a neighbor here in New York. The team thought this would be a good case for you to have on hand as a quick reference guide in the event that you encounter a similar set of facts. This case highlights the importance of reviewing all Survey Exceptions raised in your Title Reports.

The new Short Form Power of Attorney has been in affect since June 13, 2021 (just over a year), we figured we would send this out as a quick refresher.

Please also note, that all existing powers that were valid under the laws at the time they were executed are grandfathered and will remain valid subject to any further guidance.

RPL § 244 – When does Title to Property actually transfer from Grantor to Grantee?
Today we wanted to focus your attention on the importance of promptly recording your Clients’ Deed to ensure that the Fee Title to their property is unequivocally transferred as they intended. We start by looking at NY RPL § 244 which states that “[A] grant takes effect, so as to vest the estate or interest intended to be conveyed, only from its delivery; and all the rules of law, now in force, in respect to the delivery of deeds, apply to grants hereafter executed.”

Today's email is to tell you more about the "Market Value Rider" to the Owner's Policy. This rider increases the coverage for your client up to the fair market value at the time of loss. As an example, if you paid $750,000.00 for a property 5 years ago and the fair market value is now $1,000,000.00 you would only be allowed to file a claim for a maximum amount of $750,000.00 , unless you purchased this rider (then you can file the claim for $1,000,000.00). With real estate prices continuing to increase, this rider provides a high amount of coverage to your client at a low cost.

Starting today, we will be sending out a weekly email entitled “Title Tuesday” designed to keep you informed on developing title issues, court cases, industry tips or updates on available policy products.

Here is the First one of this series (let us know what you think; your feedback matters!):

While there is much attention being paid to "RON" by the industry we want to make you aware of another way to close, via remotely using the application "Zoom".
The following is from First American regarding the use of "Zoom":