Escrow & Title
In New York, a 'certificate of title' differs from a title insurance policy in that a certificate of title:
AIs more comprehensive than title insurance
BIs an attorney's opinion of title based on a title search, offering no insurance against losses if the opinion is wrong✓ Correct
CIs required for all NYC closings
DIs issued by the county clerk
Explanation
A certificate of title (attorney's certificate) is an opinion letter by an attorney stating that title appears marketable based on the title search, but it does not provide insurance protection. Title insurance actually indemnifies against losses from title defects.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
Math Concepts
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