N.Y. Comp. Codes R. & Regs. tit. 11 § 228.5

Current through Register Vol. 46, No. 45, November 2, 2024

Section 228.5 - Ancillary or other discretionary fee

(a) A title insurance corporation or title insurance agent shall not charge an applicant in connection with a residential real property closing an ancillary or other discretionary fee more than those amounts set forth herein:

(1) For a Patriot search, 200% of the out-of-pocket cost paid for the search. A title insurance corporation or title insurance agent shall not charge a flat fee for a specified number of names searched. If no out-of-pocket cost is paid for the search, then the charge to the applicant shall be no more than 200% of the fair market value of the search as charged by a non-affiliated third party. If an affiliated third party conducts the search, then the search shall not be billed at more than 200% of the lesser of the amount charged by the affiliated third party and the fair market value of the search as charged by a non-affiliated third party;

(2) For a bankruptcy search, 200% of the out-of-pocket cost paid for the search. A title insurance corporation or title insurance agent shall not charge a flat fee for a specified number of names searched. If no out-of-pocket cost is paid for the search, then the charge shall be no more than 200% of the fair market value of the search as charged by a non-affiliated third party. If an affiliated third party conducts the search, then the search shall not be billed at more than 200% of the lesser of the amount charged by the affiliated third party and the fair market value of the search as charged by a non-affiliated third party;

(3) Except as provided in paragraph (4) of this subdivision, for a municipal or departmental search, or any other search that is not included in the premium of the title insurance policy issued, 200% of the out-of-pocket cost. If no out-of-pocket cost is paid for the search, then the charge shall be no more than 200% of the fair market value of the search as charged by a non-affiliated third party in that county. If an affiliated third party conducts the search, then the search shall not be billed at more than 200% of the lesser of the amount charged by the affiliated third party and the fair market value of the search as charged by a non-affiliated third party in that county;

(4) For a municipal or departmental search that is conducted and billed by a municipality, 100% of the fair market value of the search as charged by a non-affiliated third party in that county plus the charge by the municipality;

(5) For a recording fee or charge, $25 per document plus the out-of-pocket cost charged by the county clerk, county register, or other governmental office;

(6) For a survey inspection, $75 plus the out-of-pocket costs charged by the survey inspector. The cost of a survey shall be billed as a pass through;

(7) For overnight mail charges, the out-of-pocket cost; and

(8) For escrow services, $50 per escrow.

(b) Every title insurance corporation and title insurance agent shall ensure that the amounts charged to like insureds or potential insureds are fair and nondiscriminatory.

(c) If a title insurance corporation or title insurance agent charges a fee that is not specified in subdivision (a) of this section, the fee shall be reasonable.

(d)

(1) A title insurance corporation or title insurance agent shall be responsible for payment of the title insurance closer and shall prohibit the closer from receiving any compensation directly or indirectly from the applicant and shall advise the applicant that the closer may not accept any payment from or on behalf of the applicant.

(2) If a closer engaged by the title insurance corporation or title insurance agent will be remitting a payoff to a lender following the closing, the title insurance corporation or title insurance agent that engaged the closer shall provide notice to the seller at least three days in advance of the closing of any fee to be charged by the closer for remitting the payoff. Any fee so charged should be reasonable, and sellers should be charged the same amounts for the same services. If the closer is an employee of the title insurance corporation or title insurance agent, no separate fee may be charged. Any fee charged by a closer hired by a title insurance agent shall be treated as a fee of the title insurance agent and shall be subject to Insurance Law section 2119(f) and any regulation thereunder.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 228.5

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