Title insurance can protect you from liens or other encumbrances on the property you’re buying. However, many New York buyers don’t realize they need it. It’s typically required when you purchase a house in New York that isn’t being used as a primary residence.  Because of this, you need to buy insurance from an agency like MacGregor Abstract.  To obtain title insurance NY, you need to contact a title agency like MacGregor Abstract.

There are different types of title insurance. Here are some tips for when to consider it:

If you’re purchasing a commercial property, it’s a good idea to get a commercial policy. These policies can be very expensive, though, so keep an eye out for specials and discounts.

If you’re buying a building with an existing title search on it, the title company will call this “negative” and will not issue a policy (and charge you a fee) if they find any problems. Many agents mistakenly tell clients they can avoid this by taking out their own policy first and having the title company just sign that one.

If your home has been foreclosed — even if it was only sold at public auction — you’ll need a residential policy that protects against mortgage pre-foreclosure and foreclosure actions (called “common law actions”). These policies vary in price, depending on how much coverage you want and how much time you want to wait before dealing with them through your title company.

Most people who live in New York City know that it’s worth more to have a good title insurance policy in place before you buy a house. But less well known is the fact that title insurance also covers financing transactions, such as when you’re refinancing or getting a home equity loan on your property. It even covers transactions in which you are acting as an agent for someone else, such as when you’re selling a house for your parents or your aunt and uncle.

Title insurance protects both the buyer and the seller if there is a claim of fraud or misrepresentation on either side. It also covers any mortgages or deeds of trust that might be recorded against the property.

If you’re going to buy a piece of property in New York, make sure you have title insurance before closing. And if you’re refinancing your mortgage or getting another kind of loan on your home, make sure it includes coverage for title insurance — even if an attorney advises against it.

The easiest way to find out if you’re buying a house with a title problem is to give the seller a list of questions about the property. The questions should start with, “What is the total amount of the mortgage?” And then ask, “What are the names of your current and previous lenders?” “Is there a lien on this property?” “What is the history of this property in terms of mortgage foreclosures, short sales and bank-owned properties? Is it in escrow?”

Title insurance protects you against mortgage problems like these. It will also cover you when a construction defect makes an existing loan void and forces you to sell. Title insurance is also advisable when you buy an investment property or any property that someone else owns.

In New York City and some other locations, title insurance is required before closing on a new home or investment property. This requirement doesn’t exist in most other states. But make sure you have title insurance before you buy, because title problems can come up at any time.

Paul Petersen