Category: Real Estate

If you have ever purchased a home or other real property, then you have probably been advised to purchase title insurance. Although you may be tempted to view this insurance as an unnecessary add-on, it can actually save you significant legal and financial headaches down the road.

Whatever stage of buying property you are in, it helps to have title insurance. The Syracuse residential real estate attorneys of Carden Dotzler Hammond, PLLC explain the benefits of this insurance and the risks of not having it.

Why You Need Title Insurance

You do not have to have title insurance when you buy property in New York, but the benefits are so obvious that you would put yourself at major risk to not have it. The fact is, most buyers assume that when they purchase property that the title (or legal ownership) is free of problems. However, this is not always the case.

If you do not have clear ownership of the property you purchase due to previously undisclosed errors with the title, you may end up with a host of legal issues. Among these are expensive litigation, potential challenges to your ownership, and even loss of your property.

What Title Insurance Does

Buyers need title insurance to protect them against unforeseen problems with the property they are purchasing. Among these are:

• Unpaid mortgages, liens, or taxes
• Unresolved boundary disputes
• Errors in public records such as inaccurate property descriptions
• Newly discovered heirs to the property
• Fraud, forgery, and similar irregularities
• Easements and encroachments
• Issues related to divorce
• Paid-off mortgages that were never released

What Happens If You Don’t Have Title Insurance?

To begin with, you likely will not be able to get a mortgage without having title insurance. Syracuse lenders generally require this insurance because they have an interest in title to the property being clear. Otherwise, lenders would face the risk of major financial losses.

Also, without title insurance, you could face legal challenges which may cost you money and potentially result in the loss of your property. Without insurance, you will have to pay for these yourself. This is where title insurance plays an important role.

Title insurance protects buyers at various stages of the real estate purchase process. For instance, with a policy you can:

• Conduct a title review: Prior to closing, an attorney or title company can conduct a title search on the property. This can uncover major problems like encumbrances. You must resolve these before the sale is finalized.
• Receive continued protection: If there is an undiscovered issue that comes up after the sale is finalized, title insurance can cover related legal expenses and financial losses. For example, if someone illegally sold you the property, title insurance protects you from liability.

What Does Title Insurance Not Cover?

The purpose of title insurance is to protect Syracuse real estate buyers from title defects they did not know about before the purchase. However, it does not cover issues that arise as a result of your actions after you buy the property.

Say, for instance, you build an addition to your property but do not secure the proper permits. Because you violated the building code, you are fined. Title insurance doesn’t pay for these fines because they are of your own doing after you purchased the property.

Also, title insurance does not cover eminent domain losses. The government should fairly compensate you for a forced sale, although it may not be enough to pay off your mortgage. But if not, title insurance does not cover the difference.

How Our Syracuse Residential Real Estate Attorneys Can Help

An experienced attorney can help you at all stages of your residential real estate transaction, including with title insurance matters. We can review title search reports and address issues that are uncovered in the process. More generally, a knowledgeable lawyer can help with:

• Negotiating your purchase and sale agreement
• Working with lenders to facilitate the transaction and closing
• Advising as to the requirements of New York law
• Explaining and advocating for your legal rights

If you are purchasing property, let our Syracuse legal team explain more about the benefits of title insurance. Connect with CDH Law today to get started.

One of the most troubling pieces of news that can arise during a pending real estate deal is a title issue. When a problem like this is discovered, it places a cloud on title, which means that there is a claim, encumbrance, or irregularity that may affect ownership of the property. Sellers don’t want this because it makes the property less appealing to potential buyers; buyers want to avoid a cloud on title because it may mean they don’t fully own the property.

Although title problems can be distressing, they need not derail the entire real estate transaction. Retaining legal counsel to take quick action will help resolve the issue to everyone’s benefit. Find out how the Syracuse residential real estate attorneys of Carden Dotzler Hammond, PLLC can positively address the matter.

Common Title Issues in Real Estate Deals

The title search or another stage of the real estate transaction may reveal one of several different problems with the title. They include:

• Liens: A previously unknown lien is any interest in the property that a creditor has for the property owner’s debt. Unpaid taxes, mortgages, HOA fees, and court judgments are examples.
• Errors with public records: The county clerk who records deeds and other property documents usually does not check these records for accuracy. A county employee or the person who drafted the document could have made a mistake.
• Other owners: There are several scenarios that could raise questions about whether other individuals have an ownership interest in the property. A spouse may not have signed the deed when the property was originally purchased, or a last will and testament might have left the property to someone besides the seller.
• Problems with deed signatures: When the property was conveyed to the current seller, its previous owner should have properly signed the deed. Improper signatures are those lacking authority or competency (e.g., the individual who signed the deed did not have sufficient mental capacity to do so).
• Boundary disputes: The owner may have a boundary dispute with an adjacent property owner. Two different surveys, for instance, may indicate conflicting boundary lines.

How a Syracuse Real Estate Attorney Can Help

If any of the above or some other title issue comes up, and you are a party to the pending transaction, you should reach out to an attorney. The seller of the property will particularly want to contact a lawyer since the issue could allow the potential buyer to back out of the deal. An attorney can assist in the following ways:

• Conduct a title search: It’s possible that an issue was identified without a title search, so your attorney can conduct a full search to make sure there are no other outstanding issues (and to better understand the current one).
• Conduct thorough research: A real estate lawyer can examine the deed and other property records, including those maintained at county offices, along with any records that a third party (e.g. creditor) claims may give that party an interest in the property.
• Legal research and analysis: Real estate laws and court decisions can be complex, but the good news is that there is likely a statute or case that addresses the specific issue by clarifying the parties’ respective rights and available relief.
• Assessing competing claims: Your attorney can advise you as to whether there is a valid claim concerning the property, considering the evidence and legal rules. If the claim is weak, your attorney will notify the party asserting it.
• Negotiation and resolution: Parties can resolve many title issues through negotiation and settlement out of court. They can reach a compromise that could include paying off an outstanding debt to lift a lien.
• Litigation: Ultimately, your attorney may have to take the matter to court to decide the issue. The judge can review the evidence and arguments and determine once and for all who legally owns the property.

Don’t Let Title Issues Stall Your Deal

Whether you are buying or selling property in Syracuse, a title issue could spell hassle and upend your real estate transaction. Don’t let it happen. If you have discovered a problem with the title, contact the real estate lawyers of CDH Law to handle it.

Before you can close on a property sale in Syracuse, both the buyer and the seller must agree on the terms of the sale. This involves negotiating the price, the closing date, and other conditions. After reaching an agreement, the parties put these terms into a written contract, which the buyer and the seller must both sign. This document then guides the rest of the real estate transaction and the closing process.

Due Diligence and Inspections

Conducting thorough due diligence involves performing title searches to confirm the seller legally owns the property and checking for any liens or encumbrances. Property inspections are also essential prior to closing. They involve a professional examining the property to identify any structural issues or needed repairs. The inspection gives the buyer a better understanding of the property’s condition before they finalize the purchase.

Securing Financing

Most buyers need to secure financing to purchase real estate. This usually means obtaining a mortgage from a bank or another lender. The financing process starts with the buyer submitting an application and providing their financial information. The lender then reviews this information to decide if the buyer qualifies for a loan. The approval process might include verifying the buyer’s income, credit history, and the property’s value.

Title Search and Insurance

A title search is an essential step in the real estate closing process. It involves examining public records to verify the seller’s right to transfer ownership. This search can reveal if there are any liens, unpaid taxes, or legal claims against the property. Buyers commonly purchase title insurance to protect against any undiscovered claims. This insurance provides financial protection if any covered title issues arise after buying the property.

Obtaining Necessary Approvals

In some real estate transactions, buyers must obtain approvals from various entities. For example, if the property is part of a condominium or homeowners’ association, the buyer might need approval from the association’s board. Additionally, local government bodies might need to approve certain aspects of the sale, especially if the property use is changing or if the buyer plans significant renovations. 

Final Walk-Through

Just before closing, the buyer will conduct a final walk-through to inspect the property one last time. During the walk-through, they check to ensure all agreed-upon conditions and repairs are complete and that no new issues have arisen. This inspection typically occurs a day or two before the closing day. 

Closing Day

On the closing day, the buyer and seller meet to finalize the sale of the property. This meeting often involves attorneys, real estate agents, and a representative from the lending institution. During this meeting, all parties sign the necessary documents, such as the deed and mortgage papers. The buyer completes the payment of the purchase price, often through a cashier’s check or wire transfer. Then, the seller hands over the keys to the property to finalize the transfer of the property’s ownership.

Post-Closing Responsibilities

After the closing, the buyer has several responsibilities. One of their primary tasks is to file the deed with the local county office. This filing officially records the buyer as the new property owner. The buyer must also transfer utilities into their name to maintain continuous service. Many new owners also rekey or change the property’s locks for added security.

The Role of a Real Estate Attorney

During the closing process, attorneys review and prepare legal documents, explain the implications of each document, and help clients understand their rights and responsibilities. They also coordinate with lenders, real estate agents, and other attorneys to ensure a smooth transaction. Having an attorney manage these details can prevent delays and allow for a quicker resolution of any issues that arise during the transaction.

Contact Our Syracuse Real Estate Closing Lawyer

If you need guidance through the real estate closing process in Syracuse, CDH Law PLLC can help. Contact us now to arrange your initial consultation and learn how we can assist you with your real estate needs.