How a Real Estate Law Firm New York Clears Title Defects

Fee simple absolute grants complete legal rights to possess and sell land. Buyers must also understand co-ownership forms like tenancy in common and joint tenancy with rights of survivorship. Condos involve fee simple title, while co-ops involve corporate shares and a lease.

Unpaid liabilities attach directly to real estate as legal claims. Frequent title defects include:

Mechanic's Liens: Filed under New York Lien Law by unpaid contractors for property improvement work.

Tax Claims: Imposed by taxing authorities for unpaid real property taxes or municipal utility charges.

Judgment Liens: Resulting from unsatisfied court money judgments against current or past property titleholders.

Undisclosed Mortgages: Historical mortgages that sellers paid off but failed to record as satisfied with county clerks.

Physical encroachments occur when structures cross legal property lines. A neighbor's fence built over the boundary can trigger adverse possession claims under New York real property laws. Unrecorded utility easements can grant third parties rights to access land, restricting future property alterations.

Title examiners review public records, deeds, mortgages, and court dockets to establish a clear chain of title. Tracing deed transfers back several decades ensures prior owners conveyed title lawfully without gaps. A search confirms no missing heirs or forged conveyances cloud property ownership.

Certain title search findings demand legal action before moving forward. Critical red flags include:

Gaps in ownership history indicating missing recorded deeds or invalid transfers.

Active probate proceedings involving unresolved heirship claims over inherited property.

Recorded lis pendens notices signaling active litigation involving ownership of the parcel.

Municipal tax liens or civil judgment claims exceeding seller escrow funds.

A title insurance policy requires a single premium payment at closing. A lender's policy protects the mortgage bank up to the loan balance. An owner's policy protects the buyer's equity up to the full purchase price, lasting as long as the buyer or their heirs hold title.

Standard policies contain specific exclusions for unrecorded easements, zoning violations, or boundary defects revealed by physical surveys. Real estate attorneys review commitments to remove unnecessary policy exceptions and secure crucial endorsements, ensuring maximum legal protection.

Attorneys perform searches with local municipal departments to verify property compliance. In New York City, our legal team reviews Department of Buildings (DOB) filings for open construction permits or safety violations. Municipal checks ensure the structure maintains a valid Certificate of Occupancy.

Legal counsel evaluates property surveys drafted by licensed land surveyors to verify lot boundaries, dimensions, and building locations. Comparing survey maps against legal deed descriptions ensures no unrecorded utility easements or physical encroachments impair property value.

New York purchase contracts require sellers to convey marketable title free of unagreed encumbrances. When title searches uncover defects, attorneys issue formal cure demands to seller counsel. Sellers usually satisfy monetary claims at closing using transaction proceeds to settle tax claims or liens.

Hypothetical Example for Educational Purposes Only

A buyer signed a contract to purchase a residential property in New York. During due diligence, a title search uncovered an open mechanic's lien and an unsatisfied mortgage. The legal team issued a cure notice requiring title clearance. The seller satisfied the lien and recorded the mortgage satisfaction before closing, enabling a clean title transfer.

If a seller cannot cure significant title defects within contract timelines, buyers hold clear legal rights. When title defects remain uncorrected and render title unmarketable, buyers can cancel the agreement and recover their down payment deposit in full without penalty.