NYSLTA Title Insurance Compliance FAQs
NYSLTA Title Insurance Compliance FAQs
- Jan, 21
- by Judicial Title
- Latest News
The New York State Land Title Association (NYSLTA) is a trade association representing the interests of persons and companies actively engaged in the title insurance industry in New York State. The NYSLTA is devoted to advancing the interests of all those involved in abstracting, examining or insuring title to real property. Our work benefits all title professionals in New York, including title insurance companies, abstract companies, title insurance agents, law firms, individual attorneys, surveyors and others actively engaged in real estate matters. The Association and its members frequently have questions regarding the laws and regulations governing the title insurance business in New York. In an effort to protect consumers, educate our members and to ensure compliance, NYSLTA has compiled the following Frequently Asked Questions and Answers, including links to the appropriate New York State laws or regulations.
Frequently Asked Questions:
- May a person or business entity that is not licensed as a title insurance provider receive commission or otherwise be compensated based upon business generated for acting as a title insurance provider?
Answer: Click Here (This is directly from the NY DFS Website – See Q14)
- Is a title insurance provider allowed to pay a portion of the premium to an affiliated person?
Answer: Click Here (This is directly from 11 NYCRR 35 – Insurance Reg 206)
- Is a title insurance provider who accepts affiliated business from an affiliated person required to do core title services?
Answer: Click Here (This is directly from 11 NYCRR 35 – Insurance Reg 206)
- What is the definition of core title services?
Answer: Click Here (This is directly from 11 NYCRR 35 – Insurance Reg 206)
- What is the definition of an affiliated person?
Answer: Click Here (This is directly from 11 NYCRR 35 – Insurance Reg 206)
- Is an attorney title provider considered an affiliated person?
Answer: Click Here (This is directly from 11 NYCRR 35 – Insurance Reg 206)
- Does a title insurance provider have to disclose to the applicant that it is a joint venture with an affiliated person or business?
Answer: Click Here (This is directly from 11 NYCRR 35 – Insurance Reg 206)
- Is a title insurance provider permitted to enter into a joint venture agreement with an affiliated person?
Answer: Click Here (This is directly from 11 NYCRR 35 – Insurance Reg 206)
- May an attorney who also is a title agent lawfully charge an applicant for title insurance a reduced legal fee as an inducement to use the attorney’s title agency to obtain insurance?
Answer: Click Here (This is directly from the NY DFS Website)
- Does New York Law prohibit mortgage lenders from requiring that borrowers in a real estate transaction obtain title insurance from a specific title insurer, agent, or broker as a condition precedent to securing a mortgage commitment?
Answer: Click Here (This is directly from the NY DFS Website)
- May a mortgage bank/broker that has entered into an affiliated business arrangement with a title abstract company pay commissions to its employees for referring title insurance business to an affiliated title insurance provider?
Answer: Click Here (This is directly from the NY DFS Website)
- Can any party involved in the transaction (seller’s, purchasers, lenders, brokers, etc.) reduce any fees to the borrower as an incentive to use a specific title insurance provider?
Answer: Click Here (This is directly from the NY DFS Website)
- Can a mortgage lender or its provider require the use of a specific title insurance provider as a requirement of securing the loan?
Answer: Click Here and Here (This is directly from the NY DFS Website)
- May a title insurance company agree to donate a percentage of commissions to the charity of the insured’s choice?
Answer: Click Here (This is directly from the NY DFS Website)
- May a residential real estate broker refer its clients to a list of “pre-approved” or “recommended” attorneys if the attorneys have an informal arrangement with the real estate broker to refer all their clients to the real estate broker’s affiliate title agent?
Answer: Click Here (This is directly from the NY DFS Website)
- Is it a violation of N.Y. Ins. Law § 6409(d) (McKinney 2000) for a seller to require a purchaser of real property to pay a fee for using a title abstract company/title agent of the purchaser’s own choice, while exempting a purchaser who uses the title abstract company/title agent chosen by the seller from paying such fee?
Answer: Click Here (This is directly from the NY DFS Website)
- Can a real estate broker provide marketing services to a title insurance agent and be paid a fee at a market rate for actual services rendered?
Answer: Click Here (This is directly from the NY DFS Website)
- Does a joint venture/title provider need to receive business from sources other than their own?
Answer: Click Here (This is directly from 11 NYCRR 35 – Insurance Reg 206)
- Is a title insurance agent required to implement and maintain a written cybersecurity policy for the protection of nonpublic information and certify compliance to the New York Department of Financial Services?
Answer: Click Here (This is directly from the NY DFS Website)
- Does every title corporation and agent have to report their title revenue and expenses in the annual data call?
Answer: Click Here (This is directly from 11 NYCRR 228 – Insurance Reg 208)
We hope that this page has assisted in your research of laws and regulations promulgated in New York State affecting various aspects of conducting title insurance business in the State. The Association advocates strict compliance with same, as the failure to comply may result in loss of your license, as well as, civil and/or criminal penalties. It is important to note that the list is not exhaustive; for instance, it does not consider any of the New York State Bar Associations Ethical Opinions or their Rules of Professional Conduct, nor are the Federally promulgated rules regarding the Real Estate Settlement Procedures Act (RESPA) addressed. NYSLTA does not provide legal advice, and the questions and references provided herein are not intended as a legal opinion or advice. Additional federal and state laws, regulations and opinions are also relevant to the operation of a title insurance business. You are encouraged to seek advice from an attorney and/or your underwriter for a more detailed explanation of these regulations.
Resources:
Click Here to visit the New York State Department of Financial Services website.
Click Here for full text of 11 NYCRR 35 (Insurance Regulation 206).
Click Here for full text of 11 NYCRR 228 (Insurance Regulation 208).
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