James Wilson is refinancing his home in Buffalo, NY. His new lender requires a lender's title insurance policy. Since James obtained an owner's title insurance policy when he originally purchased the property three years ago, what is the most accurate statement about his current situation?
Correct Answer
B) He must purchase a new lender's policy, but may be eligible for a reissue rate discount
When refinancing, a new lender's title insurance policy is required since each lender needs its own protection. However, if the original owner's policy was issued within a certain timeframe (typically 10 years), the borrower may qualify for a reissue or refinance rate, which provides a discount on the new lender's policy premium.
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Maria Gonzalez is purchasing a cooperative apartment in Manhattan. Her attorney is explaining title insurance options. All of the following statements about title insurance for New York cooperatives are correct EXCEPT:
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Lisa Park purchased a condominium in Syracuse, NY, and her title insurance company discovers after closing that the previous owner had not properly paid off a $25,000 home equity loan that was not revealed in the title search. What is the most likely outcome?