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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Related Topics & Key Terms
Key Terms:
Related Concepts
A quitclaim deed transfers whatever interest the grantor may have in a property without making any warranties or guarantees about the quality of title. It offers the least protection to the grantee.
Recording is the act of placing a document in the public records at the county recorder's office to give constructive notice to the world of an interest in real property. Recording protects the holder's interest against subsequent claims.
A special warranty deed guarantees that the grantor has not caused any title defects during their period of ownership, but does not warrant against defects that existed before the grantor acquired the property.
More Property Ownership Transfer Questions
David owns shares in a cooperative corporation that entitle him to occupy apartment 4B. He wants to sell his interest in the co-op. What is David actually selling?
In New York, what is the primary difference between an owner's title insurance policy and a lender's title insurance policy?
Rachel owns a property and grants a deed to her son Paul, who does not record it. Later, Rachel grants a mortgage to Community Bank, which records immediately. Subsequently, Paul records his deed. The bank claims its mortgage has priority over Paul's ownership. Under New York law, what factor will be most critical in determining priority?
Amy purchased a house in Monroe County and received a warranty deed. Before she could record it, a judgment was entered against the seller for $50,000, and the judgment creditor recorded a judgment lien. Amy recorded her deed three days later. Under New York law, how does this affect Amy's title?
Patricia owns property in Erie County and executes a quitclaim deed to her brother Mark. Mark records the deed immediately. Later, Patricia claims the deed was forged and sues to recover the property. Under New York law, what effect does Mark's recording have on Patricia's claim?
- → Jennifer inherits her grandmother's cooperative apartment in Brooklyn. The proprietary lease has 75 years remaining. What happens to Jennifer's ownership interest if the proprietary lease expires?
- → In New York, what type of property interest does a cooperative apartment represent?
- → Karen wants to make renovations to her cooperative apartment kitchen. Before beginning work, what must she typically do?
- → A cooperative corporation in New York has various ongoing responsibilities to its shareholders. All of the following are typical responsibilities of a co-op corporation EXCEPT:
- → John owns 150 shares in Riverside Cooperative Corporation, which entitles him to occupy apartment 4B under a proprietary lease. He wants to sell his cooperative interest. What is John actually selling?
- → Under New York's recording system, what happens when two deeds for the same property are recorded on the same day?
- → David owns shares in Brooklyn Commons Cooperative and wants to sublet his apartment for two years while working overseas. What restriction typically applies to subletting cooperative units in New York?
- → Lisa is explaining the difference between cooperatives and condominiums to her client. What document do cooperative purchasers receive instead of a deed?
- → Robert's proprietary lease for his cooperative apartment is about to expire. He is concerned about losing his right to occupy the unit. How long do proprietary leases typically run in New York cooperatives?
- → Sarah purchases a condominium unit in Manhattan. As a New York condominium owner, what type of property interest does she hold in the unit itself?
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Previous Question
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?