Re: Increase in County Recording Fees
The New York State Legislature recently passed an amendment to CPLR §8021 that contained the
following language “…any county may opt by county law to increase the fee for recording, entering, indexing
and endorsing a certificate on any instrument from five dollars to twenty dollars and, in addition thereto,
increase from three dollars to five dollars for each page or portion of a page.”
In essence, the NYS Legislature has allowed County Legislatures to enact a county law to increase the
County Clerk’s handling fee (which is only a portion of the recording fee) by $15.00 and the per page fee to
$5.00 per page.
Numerous counties, including Nassau and Suffolk, have enacted such laws and are directing the
respective County Clerks to charge the higher fees to record documents.
Please be advised that as a result, document recording fees will be increased.
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Date: October 3, 2008
Re: Peconic Bay Transfer Tax Amendment – First time home buyer exemption Chapter 349 of
the Laws of 2008
Chapter 349 was recently signed into law and this new legislation creates an exemption from the Peconic
Bay Region Community Preservation Fund transfer tax in the towns of Southampton, East Hampton and
Shelter Island for qualifying first time homebuyers and for certain not-for-profit corporations. The exemption
applies only, as to individual purchasers, if the property is a one or two family house, townhouse or
condominium which is to be owner occupied by the homebuyer, and if the purchase price and income of
the first time homebuyers fall within certain limits. If the purchaser is a qualifying not-for-profit corporation,
the exemption applies to any real property which will provide housing under the conditions stated in the
legislation. Please note that properties located in the towns of Southold and Riverhead will not receive the
exemption.
We have been advised that the following procedures will be in effect (subject to change):
In order to obtain the exemption, the purchaser must apply to the appropriate town PRIOR TO CLOSING by
submitting an application on the town supplied form, together with a copy of their latest tax return and a
copy of the contract of sale. Upon determining that the requirements have been met, the town official will
sign Part II (Explanation of Exemption) on the Peconic Bay Region Community Preservation Fund transfer
tax return as well as the town form granting this new exemption. BOTH forms must be submitted to the
County Clerk in order for the deed to be recorded without the payment of the Peconic Bay Region transfer
tax. If the two forms are not presented at closing, then the Peconic Bay transfer tax will be collected. An
insured deed cannot be held off record until the receipt of the town exemption and/or the Peconic Bay
transfer tax return with Part II signed by the town official. At this time it is unknown whether or not the town
(s) will permit the purchaser to apply for a refund if the tax is paid prior to the purchaser receiving an
approved exemption.
The Peconic Bay Region Community Preservation Fund transfer tax form has been amended. The
amended form must be used for all closings in the Peconic Bay Region starting immediately, even if the
exemption does not apply or is inapplicable to the particular transaction. The new amended form can be
accessed on the Suffolk County Clerk’s web site at:
http://www.co.suffolk.ny.us.us/home/departments/countyclerk.aspx
The transfer tax form MUST be printed on legal size (8.5” by 14”) paper or it will be rejected by the Suffolk
County Clerk. A copy of the amended form is attached. The subject towns are preparing their exemption
application forms and procedures at this time. The Town of Southampton has provided a brochure and
application (copies attached) for the exemption on its website located at:
http://www.town.southampton.ny.us/listing.ihtml?myid=2259&id=170&cat=Land%20Management
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April 26, 2007
Re: Recent changes in the title industry
To our valued clients, closers and friends:
Changes to the standard ALTA Owner and ALTA Loan Policy Forms
Effective May 1, 2007, the New York Insurance Department has authorized the use of the new American
Land Title Association (ALTA) 2006 forms of Owners’ and Loan Policies. The former “ALTA 1992” policy
forms will no longer be used and the new policy forms will be issued for transactions closing on or after
May 1, 2007. The new policy forms are the ALTA Owner’s Policy (6-17-06) and the ALTA Loan Policy (6-17-
06) and can be viewed on ALTA’s website at www.alta.org/forms/.
In general, the forms were modernized to, among other things, clarify and simplify the language of the
policy, restructure the policy to make it more logical and address the emerging technology applicable to the
electronic recordings and public records.
Some of the more notable changes are as follows:
1. Elimination of the Survey Endorsement: The most significant change for the majority of our clients
is the elimination of the survey endorsement now commonly used in loan policies involving land improved
by a 1-4 family dwelling. However, the new loan policy form provides automatic survey coverage language
in lieu of the old survey endorsement (so long as the insured land is improved by a 1-4 family dwelling)
without the need for the endorsement or the payment of the survey endorsement charge.
Practice Note: If you represent lenders that have come to rely upon and expect the survey endorsement, it
may be necessary to inform your clients that the coverage afforded by the old endorsement is contained in
the standard loan policy (provided the land is improved by a 1-4 family dwelling). The section of the new
policy containing the language of survey coverage is Covered Risk Number 2(c) in the new loan policy form.
2. New York Gap Coverage: The previous Standard New York Endorsements (for Owner’s and Loan
policies) had language that provided Gap coverage. The new policies include the gap coverage within the
policy language and the Standard New York Endorsements have been modified.
Practice Note: For lenders who question the existence of gap coverage, it is listed in the loan policy as
Covered Risk Number 14 (Covered Risk Number 10 in the owners policy).
There are other changes to the policies and provisions and the information contained in this notice is not
meant to be an all inclusive listing of the changes, just a summary of those changes affecting everyday
transactions.
Please contact us if you have any specific questions regarding title insurance or the new policy forms.
Revised TP-584 & TP-584-REIT
The New York State Department of Taxation and Finance has revised and issued a new form of TP-584
(3/07) and TP-584-REIT (3/07). The forms were revised to incorporate an authorization allowing the
submitter (usually a title company or legal professional) of the tax form to receive a receipted copy of the
filed return. The receipted copy of the filed return is sometimes required in the occasional transaction
where the instrument effecting the conveyance of real property will be recorded more than 15 days from the
date of transfer (the tax is due within 15 days regardless of when the instrument is presented for
recording).
As of April 2, 2007, the Tax Department has changed its procedures to require a written authorization by the
grantor or the grantee to be provided for the release of the receipted copy of the filed return (for
confidentiality pursposes). The 3/07 versions of the form contain the following required authorization within
the signature certification on page 2 of the form: “…. and authorize the person(s) submitting such form on
their behalf to receive a copy for purposes of recording the deed or other instrument effecting the
conveyance.”
click here for a copy of the new TP-584 (3/07)
Practice Note: As of now the County recording clerks should still be accepting the older TP-584 (11/04)
forms for purposes of recording a deed or other instruments effecting the conveyance of real property. The
Tax Department has stated that the modifications were minor and that the recording clerks may still accept
the older form. However, use of the new forms should begin immediately because the county clerks may
begin to reject the older forms without notice.
