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New York State Transfer Tax Form TP584 Calculations

Posted On: May 31, 2021

Effective July 1, 2021, the base tax and additional base tax may not be paid directly or indirectly by the grantee (buyer) except as provided in a contract between the grantor (seller) and the buyer. However, if the buyer pays those taxes because the seller failed to pay them, then the buyer will have a cause of action against the seller for recovery of payment of those taxes.

In the case of the conveyance of residential real property, if the transfer tax is paid by the buyer pursuant to a contract between the buyer and seller, the amount of tax shall be excluded from the calculation subject to tax

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Small Business Resources

Posted On: March 16, 2021

Boost Nassau Small Business COVID-19 Recovery Loan Program part of the New York Forward Loan Fund

Website: https://www.boostnassau.net/

SERVICES: Small Business Financing targeting NYS small businesses with 20 or fewer full-time equivalent (FTE) employees, nonprofits and small residential landlords that have seen sharp reduction in rental income.

U.S. Small Business Administration Branch Office (SBA)

Address: 350 Motor Parkway, Hauppauge NY, 11788 Ph: (631)-454-0750

Website: https://www.sba.gov/tools/content/resources-available-small-businesslong-island

SERVICES: Small Business Financing / Technical Assistance /Small Business Counseling

Small Business Development Center (SBDC) at Farmingdale State College

Address: 3 Marlin Drive, Campus Commons, 2350 Broadhollow Rd., Copiague, NY 11726
Ph: (934)-420-2765

Email: sbdc@farmingdale.edu

Website: https://www.nyssbdc.org/centers/centers.aspx?centid=26

SERVICES: Small Business Counseling / Technical Assistance / Small Business Education/Seminars

La Fuerza CDC – A Community Development Financial Institution

Address: 34 Muttontown Lane, East Norwich NY, 11732 Ph: (516)-922-8100

Email: info@lafuerzacdc.org

Website: https://lafuerzacdc.org/

Services: Small Business Education & Access to Capital - Entrepreneurs of Color Loan Fund/P.O.W.E.R. Women’s Technology Loan Fund/MWBEs Micro-Loan Program. Business Development Program - Business Counseling / Small Business Education/Seminars

Long Island Development Corporation (LIDC) / Long Island Small Business Assistance Corporation (LISBAC)

Address: 175 Engineers Road, Suite 200, Hauppauge NY, 11788 Ph: (516)-433-5000

Website: LIDC - https://www.lidc.org/ LISBAC - http://www.lisbac.org/

Services: LIDC- Targeted Loan Fund for Long Island Businesses/ Technical Assistance LISBAC – Small Business/Women Owned and Minority Owned Business Financing / Technical Assistance

Minority Business Development Agency, NYC (MBDA) U.S. Department of Commerce

Address: 48 Wall Street, Suite # 10, 5th Floor, New York, NY, 10005 Ph: 917-830-2920

Website: https://www.mbda.gov/business-center/new-york-city-mbda-business-center

Services: For Minority Business Small Business Financing / Small Business Counseling / Technical Assistance

Entrepreneurial Assistance Program (Empire Stated Development Corp.) Suffolk County Community College

Address: Sally Ann Slacke Center, 1001 Crooked Hill Road, Brentwood NY, 11717 Ph: (631)-851-6214

https://www.sunysuffolk.edu/explore-academics/workforce-training/entrepreneurial-assistancecenter/entrepreneurial-assistance-program.jsp

Services: Entrepreneurial Assistance / Technical Assistance / Business Resources / NYS MWBE Certification

Idea Hub/Center for Entrepreneurship (Hofstra University)

New School of Business Building, 148 Hofstra University, Hempstead, NY, 11549-1480

Email: ideaHUb@hofstra.edu

Website:https://www.hofstra.edu/entrepreneurship/ideahub.html

Services: Entrepreneurial Assistance / Technical Assistance / Business Resources / Business Incubator

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What is Title Insurance and How Does It Work?

Posted On: December 04, 2020

To put it simply, title insurance is a way to protect yourself from financial loss and related legal expenses in the event there is a defect in title to your property that is covered by the policy. Title insurance differs from other types of insurance in that it focuses on risk prevention, rather than risk assumption. With title insurance, title examiners review the history of your property and seek to eliminate title issues before the purchase occurs. Title insurance also differs in that it comes with no monthly payment. It’s just a one-time premium paid at closing.

Do I need Title Insurance?

Absolutely. Title insurance is a way to protect what is likely your largest investment—your home. An Owner’s Policy provides peace of mind that your title company will stand behind you if a covered title issue or defect arises after you have bought your home.

What Does Title Insurance Cover?

Any number of title issues may arise, even after the most meticulous search of public records. These hidden defects are dangerous because you might not learn about them for months, or even years, after purchase. Some common examples of risks covered by your Owner’s Policy include defects in title caused by:

  • Improper execution of documents
  • Mistakes in recording or indexing legal documents
  • Forgeries and fraud
  • Undisclosed or missing heirs
  • Unpaid taxes and assessments
  • Unpaid judgments and liens
  • Unreleased mortgages
  • Mental incompetence of grantors on the deed
  • Impersonation of the true owners of the land by fraudulent persons
  • Refusal of a potential purchaser to accept title based on the condition of the title

How Much Does Title Insurance Cost?

The one-time premium that you’ll pay for a title insurance policy varies by state, but generally is related to the value of your property. You can use our Rate Calculator to estimate how much your title insurance policy may cost. 

What’s Owner’s Title Insurance?

An Owner’s Title Policy is designed to protect you from covered title defects that existed prior to the issue date of your policy. If a valid claim is filed, your Owner’s Policy, subject to its terms and conditions, will cover financial loss up to the face amount of your policy.

What’s Lender’s Title Insurance?

A Lender’s Policy provides no coverage to the homeowner. A Lender’s Policy insures that your lender has a valid, enforceable lien on your property. Most lenders require borrowers to purchase this type of insurance policy to protect their investment.


Source: Old Republic Title

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Open -- but paid off -- Mortgages

Posted On: November 11, 2019

 By Shari Lee Sugarman


As we continue our conversation this month on some things to look out for when selling or purchasing a home, I am going to discuss old mortgages that show up on your title report and how they might affect the sale.

Chances are, when you bought your home, the prior owner had a mortgage that had to be paid off at closing. It was duty paid, and you received your “title insurance” and the keys to your home, and all was good, until you refinanced or decided to sell. Now, your lawyer is telling you you have an “open prior mortgage” that has to be taken care of prior to closing.

What this means generally is that, even though the prior owner of your home paid off their mortgage, the lender failed to properly record the satisfaction of that mortgage with the County Clerk (or City Registrar). The problem arises because when you sell, you give your purchaser “title, free and clear” and an unsatisfied mortgage is a cloud on title.

If you bought title insurance, and can find your policy, it is a simple solution. We simply send a copy of the title policy to the purchaser’s title company and the mortgage exception can be omitted (no longer an issue). The title companies have “cross-indemnification” agreements which allows them to rely on these title policies.

The problem arises when (a) you didn’t buy title insurance or (b) you can’t find your title policy. The solution is a little more time-consuming at that point. We need to get as much documentation from when you bought the house to show that the mortgage in question was paid off. 

Every title company assigns a file number to a transaction. Most of the time, we can track down the prior title company (if it still exists) and then track down the title policy. If we can't find the title policy, there are still ways of clearing the issue. The title company may ask for a copy of the HUD (bank closing statement) or checks showing the payment to the lender. Sometimes the mortgage may be so old that it is considered an “ancient mortgage” (basically the mortgage has expired by its own terms and the statute of limitations has passed for the lender to collect on it), and with the proper affidavits signed at closing, the title company can omit it. 

Another issue may arise if you have refinanced since you bought your home. Now, you go to sell it, and up pops the old mortgage that you paid off when you refinanced. Once again, the satisfaction (or the “sat”) wasn’t properly recorded confirming that it was paid off. This happened a lot in the 90’s and the mid 2000’s when there was a big refinance boom. Lenders and title companies were so busy that the sats just didn’t get recorded. This is a little more tricky. 

Since the title policy only insures your interest in the property as of the date you bought it, we cannot rely on it to clear this exception. What we are going to need to do is contact the prior lender and obtain a duplicate sat and get it recorded. Easy, right? As long as the lender hasn't gone out of business or been bought out by another lender, it just takes some time. But, tracking down a lender that has gone out of business or getting the duplicate sat from a lender where that note and mortgage was assigned 3-4 times is time consuming and frustrating and can add to extra legal bills.

What happens if you cannot track down the title policy, and you cannot get the mortgage omitted prior to closing? Are you going to have to pay off that mortgage again? No.

But, worst case scenario, the title company could agree to hold a certain amount of money in escrow until you track down and get the sat filed OR you will have to file a lawsuit known as a “quiet title action.” Basically, you ask the court to issue an order based on your proof that the mortgage is no longer valid and that the County Clerk needs to expunge it from the record. You have to serve the lender in question and provide whatever proof you can to show that it was paid off, etc. It's not difficult, if you have the evidence, but it can be costly and time consuming.

So, the moral of the story is it is so important you keep your documents until you sell your home. We all know keeping paperwork is never fun, but this is paperwork you NEED to keep. If you have it, most issues can be resolved quickly. 

But if you don't have the right paperwork, it is important to hire an attorney who knows what to do and can help you resolve these issues. 

(Little known law, by the way, New York State Real Property Actions and Proceedings Law (“RPAPL”) § 1921 and New York Real Property Law (“RPL”) § 275. RPAPL § 1921 and RPL § 275 both require a mortgagee to execute a satisfaction of mortgage and arrange to have the satisfaction recorded within 30 days. Failure of the mortgagee to do so entitles the borrower to a penalty based on when the satisfaction was recorded. The amounts are $500 for satisfaction not recorded within 30 days, $1,000 for satisfaction not recorded within 60 days, and $1,500 for satisfaction not recorded within 90 days. RPAPL § 1921 also provides that if the loan is secured by a one-to-six family, owner-occupied residential structure or condominium and the mortgagee fails to deliver the satisfaction of mortgage within 90 days, the mortgagee is liable to the mortgagor for the greater of $500 or the economic loss to the mortgagor.)

If you want to talk about this in more detail, have any questions or want to ensure you are ready to sell, if and when you are ready, please reach out. 

Sugarman Law PC
375 Commack Road, Suite 204 • Deer Park, NY 11729
info@sugarmanlawpc.com • (631) 406-7600

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