11 CRR-NY 35.7NY-CRR
11 CRR-NY 35.7
11 CRR-NY 35.7
35.7 Other disclosures to applicants.
(a)
(1) With respect to a real property or chattels real title insurance policy, a title insurance agent shall furnish a title insurance report to the applicant and the applicant’s representative at least three days prior to the scheduled date of closing; provided, however, that if an applicant is represented by an attorney, then a title insurance agent shall furnish a title insurance report to the applicant’s attorney unless the applicant also requests the title insurance report, in which case the title insurance agent shall furnish the report to both the applicant and the applicant’s attorney.
(2) If a title insurance agent is unable to deliver a title insurance report at least three days prior to closing, then the title insurance agent shall document or require documentation of the reasons for the delay.
(3) The report shall display conspicuously the following statement, or a statement containing substantially similar language, on the first page in bold type:
THIS REPORT IS NOT A TITLE INSURANCE POLICY! PLEASE READ IT CAREFULLY.
THE REPORT MAY SET FORTH EXCLUSIONS UNDER THE TITLE INSURANCE POLICY AND MAY NOT LIST ALL LIENS, DEFECTS, AND ENCUMBRANCES AFFECTING TITLE TO THE PROPERTY.
YOU SHOULD CONSIDER THIS INFORMATION CAREFULLY.
(b) With respect to a personal property title insurance policy, a title insurance corporation shall furnish the applicant and the applicant’s representative, at least three days prior to policy issuance, with a written confirmation of the proposed coverage, including any non-standard policy provisions; provided, however, that if an applicant is represented by an attorney, then a title insurance corporation shall furnish written confirmation of the proposed coverage to the applicant’s attorney unless the applicant also requests the written confirmation, in which case the title insurance corporation shall furnish the written confirmation to both the applicant and the applicant’s attorney.
(c) Except with respect to a refinancing application or where the applicant is represented by an attorney, if an applicant is seeking only a lender’s title insurance policy, a title insurance agent shall provide to the applicant a separate written notice, which shall be signed by the applicant, at the time the title commitment or title report is prepared, and which shall explain:
(1) that a lender’s title insurance policy protects the mortgage lender, and does not provide title insurance protection to the applicant as owner of the property being purchased;
(2) the risks a lender’s title insurance policy insures against and the risks an owner’s title insurance policy insures against; and
(3) that the applicant may obtain an owner’s title insurance policy to protect the applicant’s interest as an owner, and shall provide the website address for the title insurance corporation’s rate calculator or a toll-free telephone number the applicant or the applicant’s attorney may call for a premium quote from the title insurance corporation.
(d) If no title insurance agent is used, then the title insurance corporation shall provide the report and notice and obtain the applicant’s signature.
11 CRR-NY 35.7
Current through July 31, 2021
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