Understanding and Disposing Real Property Liens and Encumbrances

Transcription

1 Understanding and Disposing Real Property Liens and Encumbrances Louis H. Weinberg, Esq. Vice President and Counsel Madison Commercial Real Estate Services

2 UNDERSTANDING AND DISPOSING REAL PROPERTY LIENS AND ENCUMBRANCES Presented by Louis H. Weinberg, Esq. Vice President and Counsel Madison Commercial Real Estate Services MADISON

3 Title Insurance Overview Title insurance insures ownership of real property, free and clear of certain liens and encumbrances except those the insured willingly takes subject to Insures a Mortgage Lender Differs from other types of insurance One Time Premium Coverage lasts as long as insured holds an interest Insures against past event, not future Rate regulated by state No price shopping Service industry MADISON

4 What Title Insurance Doesn t Insure Legal Use Compliance with local zoning and building codes Environmental contaminations Eminent domain Sub-dividability MADISON

5 The Underwriting Process Part 1 SEARCHING PUBLIC RECORDS Abstracting what is it? Independent contractors Where we search Land records Deeds/Mortgages/Loan Docs/others Tax records Primes all other liens Municipal water companies MADISON

6 The Underwriting Process Part 1 SEARCHING PUBLIC RECORDS County Clerk s Records Mechanic s Liens Judgments State and Federal Tax Liens Notices of Pendency Bankruptcy Court Records Patriot Searches Municipal Searches ECORDS (cont.) MADISON

7 MUNICIPAL SEARCHES Downstate counties other than NYC Department of Buildings Violations Certificates of Occupancy Open Permits Street Reports Fire Department New York City Emergency Repair Fuel Housing Air Resources Landmark Transportation MADISON

8 SEARCHING PUBLIC RECORDS (CONT Municipal Searches Not part of the insurance policy Strictly prohibited by the rate manual Provided for informational purposes only Assists buyers counsel in due diligence ER Exception.) CONT.) MADISON

9 SEARCHING PUBLIC RECORDS (CONT.) Searches are converted and compiled into Title Report The Reading Process The Finished Product Distribute Title Report MADISON

10 Overview of the Title Commitment Schedule A Policy Details Description Proposed Insured Purchase Price Record Owner Insured Premises Insured Description Metes and Bounds File maps Tax maps Addresses (TITLE REPORT) MADISON

11 Interests in Real Property Ownership Interests Fee Title / Bundle of Rights Non-Ownership Interests Possessory Interests Leaseholds Licenses Rights of Use Enforceability Covenants Easements (light and air) Rights of Way MADISON

12 Interests in Real Property Non-Ownership Interests (cont.) Liens Charges against the property which cannot be extinguished when the property is sold or transferred Judicially enforceable through foreclosure Types of Liens Voluntary Involuntary MADISON

13 Interests in Real Property Voluntary Liens Mortgages Mechanics Liens Involuntary Liens Taxes Water Charges Mechanics Liens Judgments Franchise Taxes Medicaid Liens MADISON

14 Title Report: Schedule B Exceptions from Coverage Difference between Commitment and Policy Boilerplate Exceptions Informational Exceptions Substantive Exceptions Liens Mortgages Notices of Pendency Leasehold Organizational MADISON

15 Disposing of Exceptions Mortgages Credit Line Mortgages Mechanics Liens Unpaid taxes Judgments Notices of Pendency (Lis Pendens) Organizationals Consents/Resolutions MADISON

16 Madison Title Agency A division of An umbrella organization that provides a comprehensive suite of Commercial Real Estate Services Title Insurance 1031 Exchanges Cost Segregation Lease Abstracting Lease Administration CAM Audits Financial Due Diligence Distressed Debt Acquisition Support Loan Workout Services REO Solutions Bulk Transaction Management MADISON

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