N.Y. Comp. Codes R. & Regs. tit. 11 § 228.1

Current through Register Vol. 46, No. 50, December 11, 2024

Section 228.1 - Definitions

For purposes of this Part:

(a)Affiliated third party means an entity that controls, is controlled by, or is under common control with a title insurance corporation or title insurance agent.

(b)Ancillary or other discretionary fee means any fee for services related to a real estate transaction that is not included in the rate of premium approved by the superintendent, and that is not necessary for issuance of a title insurance policy, such as Patriot, bankruptcy, and municipal or departmental searches, or recording fees or charges. Ancillary or other discretionary fee does not include the actual recording fee or other charge imposed by a governmental entity.

(c)Applicant for insurance or applicant means:

(1) a person for whom the purchase or refinancing of the property that is the subject of the title insurance policy is financed, to whom a mortgage loan is made, or who owns or is purchasing the property or any interest therein,

(2) any other insured or prospective insured; or

(3) a person who is an attorney-in-fact for a person specified in paragraphs (1) or (2) of this subdivision.

(d)Bankruptcy search means a search of federal bankruptcy court filings to determine whether any seller or purchaser/borrower has filed a petition requesting bankruptcy protection.

(e)Closing means an event at which an interest in real property is created or transferred or a mortgage is created or refinanced, which is the subject of a title insurance policy.

(f)Data call means the annual request for data made, pursuant to Insurance Law section 2315, by a rate service organization or other agency designated by the superintendent as a statistical agent.

(g)Escrow fee means a fee paid at a closing to a title insurance corporation or title insurance agent to hold money in a fiduciary capacity, other than the insurance premium, for the purpose of paying or ensuring payment of judgments, liens or other legal obligations on the real property for which the title insurance policy is issued.

(h)Municipal or departmental search means a search of various municipal records to determine whether any violation of municipal codes and ordinances exists.

(i)Out-of-pocket cost means the actual cost charged by a non-affiliated third party, excluding costs charged directly by a municipality to conduct a search.

(j)Patriot search means a search of the specially designated nationals list maintained by the United States Office of Foreign Assets Control to determine whether the name of any seller or purchaser/borrower is on such list.

(k)Person means an individual or other entity, including an estate or trust.

(l)Premium means the rate charged for a title insurance policy

(m)Recording fee or charge means the charge by a county clerk, county register, or other governmental office for recording documents in connection with closing, including deeds, mortgages, satisfactions, powers of attorney, and Uniform Commercial Code forms.

(n)

(1)Residential real property means:

(i) real property improved by a 1-4 family dwelling, including property used in part, but not entirely, as a professional office or business; and

(ii) an individual condominium or cooperative apartment or unit used as a dwelling;

(2)Residential real property does not include:

(i) land that is not improved at the time of the issuance of the title insurance policy;

(ii) property used as a hotel or motel; or

(iii) any property with any kind of mixed use not specified in paragraph (1) of this subdivision.

(o)Statistical agent means a rate service organization licensed pursuant to Insurance Law section 2313 or other entity designated by the superintendent as a statistical agent pursuant to Insurance Law section 2315.

(p)Title insurance agent shall have the meaning set forth in Insurance Law section 2101(y).

(q)Title insurance business means activities described in Insurance Law section 6403(b).

(r)Title insurance closer means any person who, for compensation or anything of value, represents a title insurance corporation or title insurance agent at a closing.

(s)Title insurance corporation shall have the meaning set forth in Insurance Law section 6401(a).

(t)Title insurance policy shall have the meaning set forth in Insurance Law section 6401(b).

N.Y. Comp. Codes R. & Regs. Tit. 11 § 228.1

Adopted New York State Register October 18, 2017/Volume XXXIX, Issue 42, eff. 12/18/2017