TITLE INSURANCE RATE MANUAL for NEW YORK STATE This Rate Manual has been approved by the Superintendent New York State Department of Financial Service and is effective September 1, 1993. FIFTH REPRINT: August 5, 2015 SIXTH REVISION: April 8, 2018 This reprint contains all changes approved by the Superintendent of The Department of Financial Services up to and including April 8, 2018. TIRSA 370 Lexington Avenue Suite 411 New York, New York 10017 Tel: 212-867-8524 Fax: 212-867-8525 [email protected] P age | 2 New York State Effective Date: April 8, 2018 This manual sets forth rules, definitions, classifications of risk, rates for policies of title insurance and approved forms of policies, endorsements and other forms for use by the members and subscribers of the Title Insurance Rate Service Association (TIRSA). The Title Insurance Rate Service Association is licensed by the Superintendent of New York State Department of Financial Services pursuant to Article 23 of the Insurance Law as a "Rate Service Organization". This manual and its contents have been filed with and approved by the Superintendent of Department of Financial Services in accordance with the Insurance Law of the State of New York. The provisions of this manual are binding upon all members and subscribers of the Title Insurance Rate Service Association and their agents and must be used on and after the effective date hereof unless a specific deviation from this manual has been filed by an individual member company with, and approved by, the Superintendent of Department of Financial Services. MEMBERS OF TIRSA AS OF April 8, 2018 Ameristract Title Insurance Company AmTrust Title Insurance Company CATIC Title Insurance Company Chicago Title Insurance Company Commonwealth Land Title Insurance Company Conestoga Title Insurance Company Fidelity National Title Insurance Company First American Title Insurance Company Investors Title Insurance Company National Investors Title Insurance Company National Title Insurance of New York Inc. Old Republic National Title Insurance Company Security Title Guarantee Corporation of Baltimore Stewart Title Insurance Company Title Resources Guaranty Company Westcor Land Title Insurance Company WFG National Title Insurance Company FIFTH REPRINT (08/15/2015) SIXTH REVISION (04/08/2018) P age | 3 PART I DEFINITIONS AND RULES .......................................................................................................... 5 Table of Contents SECTION 1 DEFINITIONS ....................................................................................................................... 6 SECTION 2 RULES .................................................................................................................................. 7 SECTION 3 ZONE .................................................................................................................................... 9 SECTION 4 CONINSUANCE .................................................................................................................. 10 SECTION 5 MINIMUM INSURANCE: OWNERS POLICY-ADDITIONAL INSURANCE ........................ 10 SECTION 6 MINIMUN INSURANCE: LEASEHOLD INSURANCE ........................................................ 10 SECTION 7 SIMULTANIOUS ISSUE OF OWNER’S AND LEASEHOLD OWNER’S POLICIES .......... 11 SECTION 8 MINIMUM INSURANCE: LOAN POLICY-LEASEHOLD LOAN POLICY ........................... 11 SECTION 9 CONSTRUCTION MORTGAGE INSURANCE-CONSTRUCTION MORTGAGE CONVERSION INSURANCE-MINIMUM INSURANCE .................................................... 11 SECTION 10 SIMULTANIOUS ISSUE OF OWNER’S AND LOAN OR CONSTRUCTION MORTGAGE POLICES .................................................................................................... 13 SECTION 11 MORTGAGES INSURED UPON ACQUISITION OF PROPERTY WHEN NO OWNER’S POLICY COVERING ALL OF THE MORTGAE PROPERT IS NOT SIMULTANIOUS ISSUED ................................................................................................. 13 SECTION 12 REFINANCE MORTGAGE AND REFINANCE CONSTRUCTION MORTGAGE ............ 14 SECTION 13 MORTGAGE MODIFICATION AND CONSTRUCTION MODIFICATION (NO NEW MONEY) ........................................................................................................... 17 SECTION 14 SIMULATANEOUS ISSUE OF TWO OR MORE LOAN POLICES (AGGREGATION) .... 18 SECTION 15 COLLATERAL MORTGAGES .......................................................................................... 19 SECTION 16 LOAN POLICY-REVERSE MORTGAGES ....................................................................... 19 SECTION 17 OWNERS POLICY TO FORECLOSING LENDER OR TO LENDER BY DEED IN LIEU OF FORECLOSURE ................................................................................................ 20 SECTION 18 ENITIY PURCHASE AND NON-IMPUTATION ENDORSEMENT ................................... 20 SECTION 19 MEZZANINE FINANCING INSURANCE .......................................................................... 21 SECTION 20 TIRSA OWNER’S EXTENDED PROTECTION POLICY FOR RESIDENTAL REAL PROPERTY ............................................................................................................ 21 SECTION 21 CONTRACT VENDEE INSURANCE-MINIMUM INSURANCE ........................................ 22 SECTION 22 OPTION INSURANCE ...................................................................................................... 22 SECTION 23 TIRSE JUNIOR LOAN POLICY ........................................................................................ 24 SECTION 24 MORTGAGE FORECLOSURE GUARANTEE ................................................................. 24 SECTION 25 RECORDER DOCUMENT CERTIFICATE AND APPLICATION ..................................... 24 SECTION 26 NOTICE OF AVAILABILITY .............................................................................................. 25 SECTION 27 ENDORSEMENTS ............................................................................................................ 25 SECTION 28 CONTINUATION OF INSURANCE .................................................................................. 27 PART II RATES ........................................................................................................................................ 29 SECTION 1 OWNER’S AND MORTGAGE POLICY RATES ................................................................. 30 PART III EXAMPLES ................................................................................................................................ 31 SECTION 1 DEFINITIONS ..................................................................................................................... 32 SECTION 2 RULES ................................................................................................................................ 32 SECTION 3 ZONE .................................................................................................................................. 33 SECTION 5 MINIMUM INSURANCE: OWNERS POLICY-ADDITIONAL INSURANCE ........................ 33 SECTION 8 MINIMUM INSURANCE: LOAN POLICY-LEASEHOLD LOAN POLICY ........................... 33 SECTION 9 CONSTRUCTION MORTGAGE INSURANCE-CONSTRUCTION MORTGAGE CONVERSION INSURANCE-MINIMUM INSURANCE .................................................... 33 SECTION 10 SIMULTANIOUS ISSUE OF OWNER’S AND LOAN OR CONSTRUCTION MORTGAGE POLICES .................................................................................................... 34 SECTION 11 MORTGAGES INSURED UPON ACQUISITION OF PROPERTY WHEN NO OWNER’S POLICY COVERING ALL OF THE MORTGAE PROPERT IS NOT SIMULTANIOUS ISSUED ................................................................................................. 34 SECTION 12 REFINANCE MORTGAGE AND REFINANCE CONSTRUCTION MORTGAGE ............ 35 FIFTH REPRINT (08/15/2015) SIXTH REVISION (04/08/2018) P age | 4 SECTION 14 SIMULATANEOUS ISSUE OF TWO OR MORE LOAN POLICES (AGGREGATION) .... 38 SECTION 15 COLLATERAL MORTGAGES .......................................................................................... 41 SECTION 19 MEZZANINE FINANCING INSURANCE .......................................................................... 41 SECTION 28 CONTINUATION OF INSURANCE .................................................................................. 42 PART IV APPROVED FORMS ................................................................................................................. 43 SECTION 1 CURRENT TITLE INSURANCE POLICY FORMS ............................................................. 44 SECTION 2 CURRENT ENDORSEMETNS ........................................................................................... 44 SECTION 3 OTHER CURRENT FORMS ............................................................................................... 46 SECTION 4 PRIOR ENDORSEMENTS FOR USE WITH ALTA 2006 POLICIES ................................. 46 RERSERVED PRIOR ENDORSEMENTS FOR USE WITH ALTA 2006 POLICIES PRIOR ENDORSEMENTS FOR USE WITH ALTA 2006 POLICIES PRIOR ENDORSEMENTS FOR USE WITH ALTA 2006 POLICIES SECTION 5 PRIOR 1992 POLICIES AND PRIOR ENDORSEMENTS FOR USE THEREWITH .......... 47 PRIOR 1992 POLICIES PRIOR ENDORSMENTS FOR USE WITH ALTA 1992 POLICIES SECTION 6 PRIOR 1992 POLICIES AND PRIOR ENDORSEMENTS FOR USE THEREWITH ......... 50 PRIOR 1990 POLICIES PRIOR ENDORSMENTS FOR USE WITH ALTA 1990 POLICIES PART V SAMPLES POLICES .................................................................................................................. 51 PART VI SAMPLES ENDORSEMENTS ................................................................................................ 110 PART VII SAMPLE OTHER CURRENT FORMS .................................................................................. 174 PART VIII PRIOR ENDORSEMENT FOR USE WITH ALTA 2006 POLICIES ..................................... 183 PART IX PRIOR 1992 POLICIES AND PRIOR ENDORSEMENT FOR USE THEREWITH ............... 192 PART X PRIOR 1990 POLICIES AND PRIOR ENDORSEMENT FOR USE ....................................... 276 FIFTH REPRINT (08/15/2015) SIXTH REVISION (04/08/2018) P age | 5 PART I DEFINITIONS AND RULES FIFTH REPRINT (08/15/2015) SIXTH REVISION (04/08/2018) P age | 6 PART I – DEFINITIONS AND RULES SECTION 1 - DEFINITIONS As used in this Manual the following definitions apply: Amount of Insurance – The amount of insurance set forth in the Policy. Bracketed Rate –The rates per thousand in Part II of this Manual. Collateral Mortgage – A Mortgage given as additional security for the same indebtedness or obligation secured by a Primary Mortgage on real property located in New York State. Commercial Real Property – Real property other than Residential Real Property. Company – Each title insurance corporation to which this Manual applies and any title insurance agent acting on behalf of such title insurance corporation in the transactions described herein. Consideration – Anything of value being paid or transferred to the transferor in exchange for the real property or cooperative unit, or interest therein, plus the amount of any lien or encumbrance, whether or not assumed or taken subject to, remaining on the real property or cooperative unit, or interest therein, at the time of transfer, except as otherwise expressly set forth in this Manual (see Section 9 (C) – (Construction Mortgage Insurance – Construction Mortgage Conversion Insurance – Minimum Insurance), Section 12 (B) (iii) and (D) (iii) – (Refinance Mortgage and Refinance Construction Mortgage), Section 13 (B) (iii) and D (iii) (Mortgage Modification and Construction Mortgage Modification) and Section 28 (Continuation of Insurance)). Construction Loan – A building loan, a project loan or any other loan which is advanced in stages and for which the Policy is re-dated when each advance of the loan proceeds is made. Construction Mortgage – A Mortgage securing a Construction Loan. Construction Mortgage Policy – A Loan Policy, including a Leasehold Loan Policy, insuring a Construction Mortgage. Construction Mortgage Rate – The rate provided in Section 9 (A) (Construction Mortgage Insurance – Construction Mortgage Conversion Insurance – Minimum Insurance) of this Manual. Endorsement – An endorsement included in this Manual. Investor – A person or entity acquiring an interest in an entity that is the record owner or lessee of real property or the owner of a cooperative interest. Leasehold Loan Policy – A Loan Policy with a Leasehold Endorsement (Loan Policy) or a Cooperative Endorsement (Loan Policy). Leasehold Owner’s Policy – An Owner’s Policy with a Leasehold Endorsement (Owner’s Policy) or a Cooperative Endorsement (Owner’s Policy). Loan Policy – A Policy, including a Leasehold Loan Policy, insuring a Mortgage that is not a Construction Mortgage. Loan Rate – The rates provided for Loan Policies in Part II (Rates) of this Manual. FIFTH REPRINT (08/15/2015) SIXTH REVISION (04/08/2018) P age | 7 Modification Construction Mortgage Rate – The rate provided in Section 13 (C) (Mortgage Modification and Construction Mortgage Modification) of this Manual. Modification Rate – The rate provided in Section 13 (A) (Mortgage Modification and Construction Mortgage Modification) of this Manual. Mortgage – An instrument creating a security interest on real property or an interest therein, or on a cooperative interest, securing a loan or other obligation. Owner’s Policy – A Policy, including a Leasehold Owner’s Policy, insuring an ownership interest or a lessee’s interest in real property or a cooperative unit, or an appurtenance thereto. Owner’s Rate – The rates provided for Owner’s Policies in Part II (Rates) of this Manual. Policy – A form of title insurance policy included in this Manual. Primary Mortgage – A Mortgage, other than a Collateral Mortgage, made by a primary obligor or guarantor to secure a loan or other obligation. Refinance Construction Mortgage Rate – The rate provided in Section 12 (E) (Refinance Mortgage and Refinance Construction Mortgage) of this Manual. Refinance Rate – The rate provided in Section 12 (A) (Refinance Mortgage and Refinance Construction Mortgage) of this Manual. Residential Real Property – (i) Real property improved by a 1-4 family dwelling; (ii) an individual condominium unit used as a dwelling; or (iii) an individual cooperative apartment/unit used as a dwelling. Residential Real Property does not include land which is not improved at the time of the issuance of the Policy. Real property improved by a 1-4 family dwelling used in part, but not entirely, as a professional office, shall be deemed to be Residential Real Property. Property with any other kind of mixed use shall not be deemed Residential Real Property. (See Example in Part III) Simultaneous or Simultaneously – Occurring on the same calendar day. SECTION 2 – RULES (A) All charges, fees and premiums set forth in this manual, pursuant to Section 2314 of the Insurance Law, are mandatory upon each Company upon approval by the Superintendent of Insurance, and cannot be waived, reduced or increased, except as provided in Paragraph H, Section 2 hereof or as provided in Section 2339 of the Insurance Law. (B) Any rate, premium, fee or other charge set forth in this Manual shall apply to any transaction closed on or after the effective date of any change in such rate, premium, fee or other charge even though application may have been made prior to the effective date of this Manual. (C) No form of Policy, Endorsement, or other coverage may be issued which varies the Covered risks conditions, or exclusions of a Policy unless first approved by the Superintendent of Department of Financial Services. Approved Policies and Endorsements are set forth in Part IV hereto. No form of Policy not approved by the Department of Financial Services may be issued or updated by Endorsement or otherwise. (D) Except as otherwise specifically set forth in this Manual, the premium charged may not be less than the minimum premium set forth in Part II (Rates) of this Manual. FIFTH REPRINT (08/15/2015) SIXTH REVISION (04/08/2018) P age | 8 (E) Premiums for each Policy and each Endorsement shall be charged in whole dollar amounts, rounded to the nearest dollar. In calculating any premium, a remainder of less than fifty cents shall be rounded down and fifty cents and above shall be rounded up. (See Example in Part III) (F) Upon notification to the applicant, a Company may decline to search, examine or insure any title, or to issue any Endorsement. A Company may, at any time, and in its sole discretion, refuse an application or cancel any unclosed application, without liability on the part of the Company. (G) Extra charges may be made at or after the receipt of the application for examination of title which may involve additional tax lots, multiple chains of title, land under water, land in bed of streets, rights-of-way, driveways, easements, strips and gores, foreclosures, proceedings under federal bankruptcy or state insolvency related statutes, or for other unusual difficulties in the examination of title, or for unusual expenditures for travel, or for recording instruments, or for telephone, telegraph or delivery charges. The Company may impose additional charges for closing attendance in excess of two hours and for any closings extending beyond normal business hours and where additional attendances are necessary or travel arrangements and distance warrant. (H) All charges pursuant to this Manual must be paid at the time of closing, unless otherwise set forth herein. The Company shall withhold delivery of the policy and shall have no liability until all applicable charges and the premiums and fees set forth in this Manual have been paid in full. A Policy, Endorsement, form, guarantee, certificate of title, title report or other service authorized in this Manual which is ordered for use by an agency or department of, and for the use by, the United States Government may be delivered prior to payment therefore. Payment for such Policy or other service shall be made by said agency or department of the United States Government not more than 60 days after delivery. (I) A policy other than a Loan Policy, shall be issued only in the name of the present owner(s) of the insured estate or as provided in Section 18 (A) (Enitiy Purchase and Non Imputation Endorsement) and, if the present owner of the insured estate is acting as nominee pursuant to a written agreement, also in the name of the principal on whose behalf the nominee holds title, “as their interests may appear”, provided that the principal holds no other estate or interest in the land. Except as provide in (i) below no other party holding a separate estate or interest may be named as an insured "as its interest may appear". (i) An Owner’s Policy insuring the United States of America and any of its agencies or departments may be issued in the name of the United States of America and its agency or department, “as their interests may appear”. (J) FOR OWNER’S POLICIES: In the absence of a survey acceptable to the Company the Policy shall contain the following language or language similar meaning: "Subject to any state of facts an accurate survey would show". (i) For Residential Real Property only, the Company shall charge to omit, by inspection, an exception for changes subsequent to the date of the existing survey. (ii) For Commercial Real Property, an exception for changes subsequent to the date of the existing survey shall be omitted only upon receipt of an updated survey acceptable to the Company. (K) FOR LOAN POLICIES: (i) For Commercial Real Property in the absence of a survey acceptable to the Company, the Policy shall contain the following language or language of similar meaning: "Subject to any state of facts an accurate survey would show". FIFTH REPRINT (08/15/2015) SIXTH REVISION (04/08/2018) P age | 9 (a) Except as provided in (b) below, for Commercial Real Property, an exception for changes subsequent to the date of the existing survey may be omitted without an updated survey. (b) For Commercial Real Property, if the Mortgage secures a building loan or a project loan, an exception for changes subsequent to the date of the existing survey shall not be omitted except upon receipt of an updated survey acceptable to the Company. (ii) For Residential Real Property, nothing herein shall prohibit a Company from raising an exception for any state of facts an accurate survey would show or changes subsequent to the date of an existing survey, as applicable. (L) Every Construction Mortgage Policy insuring a construction loan shall contain the following language, or language of similar meaning: Pending disbursement of the proceeds of the loan secured by the insured Mortgage described herein, this Policy insures only to the extent of the amount actually disbursed plus interest accrued thereon but increases as disbursements are made in good faith and without knowledge of any defects in, or objections to, the title, up to the face amount of the Policy. Title must be continued down to the date of each disbursement and the Company shall furnish to the mortgagee a continuation report, stating whether, since the date hereof or since the date of the last preceding continuation report, any liens or encumbrances have been recorded, whether any taxes, assessments or other charges of whatever nature which have become due and payable have not been paid, whether, if an updated survey is furnished, there are survey variations, encroachments or violations of set-back restrictions, and whether there are any additional title exceptions or objections. (M) The Policy forms in this Manual for cooperative leasehold insurance are the ALTA Owners’ Policy with the Cooperative Endorsement (Owner’s) and the ALTA Loan Policy with the Cooperative Endorsement (Loan). SECTION 3 - ZONES (A) For rate making purposes the State of New York is divided into two Zones as follows: Zones Counties (1) Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Cortland, Delaware, Erie, Essex, Franklin, Fulton, Genesee, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego, St. Lawrence, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, Steuben, Tioga, Tompkins, Warren, Washington, Wayne, Wyoming, and Yates (2) Albany, Bronx, Columbia, Dutchess, Greene, Kings, Nassau, New York, Orange, Putnam, Queens, Rensselaer, Richmond, Rockland, Suffolk, Sullivan, Ulster and Westchester (B) The rates for Zone 1 do not include the cost of searching incurred by a Company. A separate charge shall be made for any such search. (C) The rates for Zone 2 include the cost of searching and the tax search for one tax lot. Additional charges shall be imposed for tax searches on additional tax lots. (i) The cost of one continuation of title and one tax continuation is included. Additional charges may be imposed for subsequent continuations prior to closing. FIFTH REPRINT (08/15/2015) SIXTH REVISION (04/08/2018) P age | 10 (D) The premium for a Policy does not include the cost of any ancillary services, which include, but are not limited to, searches of municipal departments and other searches provided at the request of and for the information of a proposed insured or its representative. (E) When a Policy insures property located in both Zones 1 and 2, the rates and rules for Zone 2 shall apply. (See Example in Part III) SECTION 4 - COINSURANCE (A) A coinsurance transaction is a transaction in which each coinsurer assumes a designated portion of the total Amount of Insurance from the first dollar and is liable for only such portion of any loss. Each coinsurer shall issue a Policy or the Coinsurance Endorsement setting forth the amount of liability it assumes. (B) Coinsurance with Joint and Several Liability is coinsurance in which the liability for a designated amount of loss or damage from the first dollar is assumed jointly and severally among all of the coinsurers. (i) Whenever joint and several liability is requested, the Joint and Several Liability Endorsement will be issued and each coinsuring Company shall charge an additional premium which shall be at the rate of $1 per $1000 of the total Amount of Insurance to which the joint and several liability shall apply. (C) The premium for a coinsurance transaction shall be calculated on the total Amount of Insurance by all coinsurers at the applicable rate set forth in this Manual, and shall be apportioned among all coinsurers in proportion to each coinsurer’s designated portion of the total Amount of Insurance. SECTION 5 - MINIMUM INSURANCE: OWNER'S POLICY – ADDITIONAL INSURANCE (A) An Owner's Policy shall not be issued for less than the greater of the contract price (including all unpaid liens thereon which the purchaser assumes or takes subject to) or the fair market value of the premises, except under the provisions of Section 4(A) (Coinsurance);Section17 (Owner’s Policy to Foreclosing Lender or to Lender by Deed in Lieu of Foreclosure); Section18 (Entity Purchase and Non-Imputation Endorsement); Section 19 (Mezzanine Financing Insurance); Section 21 (Contract Vendee Insurance – Minimum Insurance); Section 22 (Option Insurance); or Section 27 (D) only 9 (b) (New York City Development Rights Endorsement). (B) A Leasehold Owner’s Policy with a Cooperative Endorsement shall not be issued for less than the greater of the contract price (including all unpaid liens thereon which the purchaser assumes or takes subject to) or the fair market value of the cooperative unit. (C) A Company may increase the Amount of Insurance of its previously issued Owner’s Policy by the issuance of the Increase in Amount of Insurance Endorsement (Owner’s Policy) reflecting the revised Amount of Insurance. The rate to be charged for such increase shall be on the additional Amount of Insurance exceeding the Amount of Insurance of the Owner’s Policy, as previously issued, computed applying the applicable Bracketed Rates starting at the Amount of Insurance of its previously issued Owner’s Policy based on the Owner’s Rate in effect at the time of such Endorsement. The revised Amount of Insurance shall not be less than as required by this Section 5 (A) or (B). Notwithstanding the issuance of a Increase in Amount of Insurance Endorsement to a previously issued Owner’s Policy, there shall be no change in the date of the Policy. (See Example in Part III) SECTION 6 - MINIMUM INSURANCE: LEASEHOLD INSURANCE (A) The rate for a Leasehold Owner’s Policy shall be the Owner’s Rate and shall be based upon the Amount of Insurance selected by the insured according to one of the following methods: FIFTH REPRINT (08/15/2015) SIXTH REVISION (04/08/2018)