Title insurance glossary

The Automated City Register Information System, New York City's property records and e-recording platform. It serves Manhattan, Brooklyn, Queens and the Bronx. Staten Island records through the Richmond County Clerk instead.

A condensed history of everything recorded against a parcel — conveyances, mortgages, liens, judgments and encumbrances — assembled in chronological order so the state of title can be examined.

Consolidation, Extension and Modification Agreement. The instrument that consolidates an assigned existing mortgage with a new gap mortgage into a single lien, so mortgage recording tax is charged only on the new money rather than on the whole refinance.

The Peconic Bay Community Preservation Fund transfer tax, charged on conveyances in the five East End towns of Suffolk County — East Hampton, Southampton, Shelter Island, Southold and Riverhead — above a town-specific exemption.

Closing Protection Letter. An underwriter's indemnity to a lender against certain losses arising from the settlement agent's handling of funds or documents at closing.

The successive conveyances through which ownership has passed. A break in the chain — a missing deed, an unresolved estate, a conveyance by someone without authority — is a defect that must be cleared.

Any claim, encumbrance or irregularity that impairs marketable title, whether or not it turns out to be valid. A cloud has to be resolved or specifically excepted before a policy will issue clean.

The underwriter's written undertaking to issue a policy on stated terms once the listed requirements are met and the exceptions are resolved. It is the working document of the clearance phase.

District, Section, Block and Lot — the tax map identifier used in Suffolk County. New York City uses borough, block and lot instead.

A right held by someone other than the owner to use part of the property for a specific purpose — a driveway, a utility line, a right of way. Easements survive a sale and appear as exceptions.

Any right or interest in the property held by someone other than the owner that reduces its value or restricts its use — a mortgage, a lien, an easement, a restrictive covenant.

An amendment to a title policy that adds, modifies or removes coverage for a specific risk. Survey, zoning, access and environmental protection lien endorsements are common.

Funds or documents held by a neutral third party pending completion of agreed conditions. In a New York closing, escrow may also cover a post-closing holdback for an unresolved municipal issue.

A matter specifically excluded from title policy coverage. Some exceptions are standard; others are specific to the property and can often be removed before closing with the right document or payoff.

The Foreign Investment in Real Property Tax Act. Requires withholding on a transfer by a foreign person unless the transferor certifies non-foreign status.

A lien arising from a money judgment docketed against an owner, attaching to real property they hold in the county where it is docketed. Judgments against prior owners can survive if not properly discharged.

A title policy protecting the lender's security interest for the amount of the loan. Its coverage declines as the loan is paid down and it protects the lender, not the owner.

An additional New York transfer tax on residential conveyances of $1,000,000 or more, customarily paid by the buyer. Within New York City the rate is progressive by price band; outside the city it is a flat 1%.

Title a reasonable, well-informed buyer would accept — free of defects and clouds serious enough to expose them to litigation or to impair resale.

A lien filed by a contractor, subcontractor or materialman for unpaid work or materials. New York imposes strict time limits on filing, which is why the title affidavit asks about recent work.

A New York tax on the amount of new indebtedness secured by a mortgage, charged at recording. Rates vary by county and, in New York City, by loan size and dwelling type. A CEMA limits it to the gap amount.

A search of town, village or city records for certificates of occupancy, open and expired permits, violations, municipal liens and emergency repair charges. The most common source of New York closing delays.

A title policy protecting the buyer's interest for the full purchase price. It is bought once at closing and lasts as long as the insured or their heirs hold an interest in the property.

Westchester County's Property Records Electronic Portal, used for submitting and tracking recorded instruments in that county.

The New York State Real Property Transfer Report, filed with the deed in every county outside New York City. The barcoded PDF must be generated rather than photocopied.

New York City's Real Property Transfer Tax, customarily paid by the seller, charged at different rates for residential and commercial property and at a higher rate above $500,000.

A measured drawing of the parcel showing boundaries, improvements, encroachments and easements. Without a survey, a policy carries a standard survey exception.

The New York State Combined Real Estate Transfer Tax Return, credit line mortgage certificate and certification of exemption, filed with virtually every conveyance. New York City uses the TP-584-NYC variant.

The examination of public records to establish the current state of title — who owns the property, what encumbers it, and what must be resolved before it can transfer cleanly.

A financing statement that perfects a security interest in personal property. In real estate practice it appears most often on cooperative apartments, where ownership is shares rather than real property.