SYRACUSE — A new state title-agent licensing law that went into effect Sept. 29 means the clock is ticking for title agents across the state, who have until Jan. 1, 2015, to submit their license application. The New York State Land Title Association, Inc. (NYSLTA) supported the new law, which will bring a new level […]
SYRACUSE — A new state title-agent licensing law that went into effect Sept. 29 means the clock is ticking for title agents across the state, who have until Jan. 1, 2015, to submit their license application.
The New York State Land Title Association, Inc. (NYSLTA) supported the new law, which will bring a new level of transparency to real-estate finance, says Robert Treuber, executive director of the association. Formed in 1921, NYSLTA offers membership to title-insurance companies licensed in the state, abstract companies, title-insurance agents, law firms, individual attorneys, surveyors, and others actively engaged in real estate.
The new law also guarantees a level of professionalism in the title-agent field, he contends.
Title agents conduct searches on properties undergoing sale to make sure the new owner will have free-and-clear title to the property and they write an insurance policy to protect the new owners from unforeseen claims, fraud, and other risks. The vast majority of lenders require title insurance before approving financing, Treuber notes.
The problem in the past was that there wasn’t a lot of transparency behind this process and homeowners weren’t sure what all their fees were paying for, says William Collins, a title officer with Rochester–based Frontier Abstract & Research Services, Inc., which also has an office at 224 Harrison St. in Syracuse. The company services all of New York’s 62 counties.
“Agents are now going to have to give a lot more disclosure than we used to,” Collins says.
This aspect of the law creates some challenges because different counties across the state handle real-estate transactions differently, Collins says.
For example, title agents in zone 1 — which includes Broome, Erie, Livingston, Monroe, Niagara, Onondaga, Schenectady, and Wayne counties — do not include recording fees and charges among their billable services. Those costs have always been charged by the attorney overseeing the transaction. But now, title agents must track down those costs and disclose them even though they aren’t actually charging them, Collins says.
As part of the new law, title agents will also have to apply for a license if they wish to continue working as a title agent, Treuber says.
He doesn’t expect the licensing requirement to affect overall business practices or increase the cost of title services, but it will add some additional paperwork for title agents.
“I would not say they are in any way onerous,” he adds.
Agents will also have to meet mandatory pre-licensing education and examination requirements or apply for a waiver, Treuber says. Those waivers apply to attorneys in good standing and professionals who can demonstrate five years of continuous experience as an agent.
For that reason, Collins encourages his colleagues to submit their license applications well in advance of the Jan. 1 deadline.
He expects this may be more difficult for smaller companies that don’t have a lot of free time to devote to filling out applications or the money to hire someone to oversee the process.
The state Department of Financial Services will regulate and administer the title-agent licensing law, including overseeing the licensing process.