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Download our latest newsletter in PDF format. On May 31, 2011 , the New York State Insurance Department opined that a violation of Insurance Law §6409 (d) occurs when a residential real estate broker refer s its clients to attorneys on an "approved' or "recommended" list and the attorneys, in turn, refer those clients to the broker's affiliate title agent under common control. Pursuant to the opinion, such a quid pro quo is violation of Insurance Law Sec. 6409 (d). The Department further states than even “an informal quid pro quo, whereby attorneys that do not make the referral quota are removed from the list” would be a violation of the law. The opinion further states that any person or entity that accepts or receives such a quid pro quo is subject to a penalty equal to the greater of $1,000 or five times the amount thereof. In the interest of keeping our clients informed we are pleased to share this excerpt from the latest New York State Land Title Association ("NYSLTA") newsletter. Jean Partridge, our Chief Counsel, is a co-editor of the newsletter and serves on the Association’s executive committee. Download the complete newsletter here (PDF). The Office of the Westchester County Clerk has released a new version of the PREP System. The new version will contain a number of enhancements, many suggested by customers.
Multiple parties can be copied from a previous document in a single operation. By choosing "Copy Previous Party" on the Party Tab, you will have the ability to check the "Copy Multiple Parties" checkbox and then choose all the parties you wish to copy to your new document. When "Copy Multiple Parties" is checked, each party will have checkboxes allowing you to add that party as a first or second party. After checking the boxes for all the parties you would like to add to the document and choosing "Copy", the parties will all be added directly to the party grid at the bottom of the screen, avoiding the need to choose "Copy Previous Party" and then "Add Party" each time.
Party Types have been simplified for most documents. When entering a document which does not require PREP generated tax forms, the Party Tab will offer two party types, "Individual" and "Other." The only time it is necessary to specify the specific party type (Corporation, Trust, etc.) is when the document being recorded is accompanied by a TP-584 and/or RP-5217. For other documents, if a party is a person or an estate, they should be considered an "Individual." Any other entity should be listed simply as "Other."
Search for tax identification information or an address. By choosing "Search for SBL or Address" on the property tab, you will be able to enter a property address and search for the section, block and lot or tax identifier. Alternatively, you can enter a tax identifier and search for a property address. This search feature is provided as a courtesy by the Office of the Westchester County Clerk and contains data provided to Westchester County by each local municipality. This data is only periodically updated so questions or concerns should still be addressed to the local tax assessor.
PREP tax forms are identified as "PREP" forms. You will notice that when you print tax forms created from tomorrow forward, the word "PREP" will appear in the upper right hand corner. We hope this will remind you that all pages of the tax form you submit to our office must be created on the PREP System.
An Address Book has been added to the Copy Party function. Many users enter the same parties in many of the documents that they record with this office. If there is a party that you enter often, the next time you enter it in the Party Tab, you can check the "Add to Address Book" link and then you will never have to type out the information for that party again. The most common examples are Mortgage Electronic Registration Systems, Inc. (MERS) and the large lending banks. After adding an entry to your Address Book, the next time you need to enter it, you will simply click on the "Copy Previous Party" button to add the entry. Once the Copy Party dialogue box is open, check the box that says "Include parties from the Address Book" to view all the parties you have previously saved. You would then copy the party in the same manner as you would copy any party into your document, by clicking "Copy" on the line for the party, or if copying multiple parties, by checking the 1st or 2nd party checkbox.
First or Second Party must be chosen after copying a single party. Be careful to choose correctly between 1st and 2nd party when using the "Copy Party" function. Sometimes a party you are copying has been a 2nd party on one document and will be a 1st party on another. The most common example is when a purchaser is a 2nd party to the deed (buyer), but then the 1st party to the mortgage (mortgagor). PREP will now blank out this field for copied parties to remind the user to choose whether the current party is the 1st or 2nd party. Keep in mind that this doesn't apply when copying multiple parties, because you choose 1st or 2nd party in the Copy Party dialogue box, prior to copying them into the document.
Your Suggestions Are Welcome We hope that the current enhancements make it a little easier and faster to record documents in Westchester County. Please remember that while using the PREP System, if you think of something that would improve the system, you can click the "Suggestions" link at the bottom of the page and share it with us. It is only through your feedback that we are able to implement new ideas to improve the system.
For more information, contact: Office of Westchester County Clerk Timothy C. Idoni 110 Dr. Martin Luther King Jr. Blvd., White Plains, NY 10601 http://PREP.WestchesterClerk. PREP Help Line: (914)995-3111 An excellent article on title insurance and its benefits. From the Washington Post, November 27th edition. Pursuant to the authority granted by Chapter 228 of the Laws of 2009, which added Tax Section 1206 (“Imposition of taxes on deeds in the City of Peekskill”) to the State Tax Law, the Common Council for the City of Peekskill has adopted Local Law No. 11 of 2010 imposing a Real Property Transfer Tax on the conveyance of real property, or an interest therein, located in whole or in part in the City of Peekskill. The Transfer Tax will be one percent (1%) of consideration, payable by the grantor on a deed delivered on or after December 1, 2010. The tax is required to be paid within thirty days after delivery of the deed and prior to recording. The procedure for payment has not yet been determined. Although the Local Law does not contain a provision for the grandfathering of contracts of sale executed prior to December 1, 2010, Tax Law Section 1206 provides that “such taxes shall not apply if the contract for any such conveyance was made prior to September 1, 2007”. Click here for the Transfer Tax form. The Nassau County Legislature has passed a local law increasing the block fee from $10.00 to $75.00 per block recited in any instrument submitted for recording and indexing, in the land records of Nassau County Clerk’s Office, including satisfactions of mortgages and cancellations of liens, effective December 1, 2010. Read the PDF memo here. Effective September 1, 2010, the New York State Tax Department's interpretation regarding the application of the sales and use tax to the sale of abstracts of title and other public record searches was changed. The changes better reflect controlling judicial case law and administrative decisions, as well as achieve a more consistent interpretation of the statutory language regarding taxation of information services. The Tax Department's revised policy relating to the taxability of sales of abstracts of title as information services applies to sales of information delivered on or after September 1, 2010. Read the full memo in PDF format here. This memorandum from the New York State Unified Court System details newly-signed legislation increasing various court fees. Read the full memo in PDF format. Publication 718 from the New York State Department of Taxation and Finance lists current sales tax rates by county. See this in PDF format. From the Westchester Women's Bar Association News: "The Lawyering and Parenting Committe of the Westchester Women's Bar Association announced the recipient of its annual "Family Friendly Employer" award in early May. This year's recipient, Benchmark Title Agency, LLC of White Plains, was selected from area employers for embracing employment policies and practices that allow for a balance of career opportunities with family responsibilities. Benchmark has achieved an impressive reputation and position in the industry while extending opportunities for employees to use flexible work arrangements in order to meet family obligations. "Co-founded by Thomas N. DeCaro and Jean Partridge in 2005, Benchmark provides a variety of services to its clients. The 18-person agency combines experience in underwriting with experience as title agents, supported by a strong customer service department. "The Family Friendly Employer Award will be presented to Benchmark Title at the WWBA Annual Dinner and 35th Anniversary Celebration on June 9, 2010. The WWBA extends its congratulations and best wishes to Benchmark Title. Keep up the good work." See the article in PDF format. Westchester County requires that transfer documents be completed on-line using PREP Tax Forms. In order for Benchmark to complete PREP tax forms, please complete this form at least three days prior to closing to ensure timely delivery of completed forms. Fax completed forms to (914) 422-1550. PREP Forms Questionnaire (PDF) January 1st is fast approaching. Any land documents submitted to the Office of the Westchester County Clerk after that date must be accompanied by cover pages and certain tax forms (TP-584 and RP-5217) created using the PREP System. Do You Plan To Submit Checks Greater than $500? Contact Us NOW. (1) Create your account or accounts on the PREP System (Visit prep.westchesterclerk.com). (2) Use the Suggestions link at the bottom of the page to email your User ID (not password) and your company name and address to us. (3) We will research which guarantee letters are on file for you and link them to your PREP User ID. (4) Be sure to include ALL User IDs for your company. Currently set up can take place within a few hours. However, after January 1st you may need to wait up to a day to get set up so please do not delay. REMINDER: Acceptable Tax Forms ● The signed version of the relevant tax form was created via the PREP System; and ● Any changes to the tax form have been initialed by the necessary parties; and ● The form has been edited via the PREP System to incorporate the hand-written changes; and ● Both the unsigned “corrected” form and the signed form are presented to our office. In exceptional circumstances only our office will accept RP-5217 forms and TP-584 forms which were not created on the PREP System. However, the circumstances must be exceptional and outlined in a written request to our office. If not, call Rosia Blackwell Lawrence at (914)995-3082 to get signed up today. Classes are held in White Plains three times a week and require an advance reservation. The PREP Team Is Listening Print All: At your request, we added a “Print All” function which will allow you to print all of your cover pages and tax forms for your package. Just click on “Print” at the package level to try out this new feature. PREP Test System: There is now a link to our PREP Test System on the login page for those of you who would like to “test” the system. We encourage you to take advantage of this system. Package Screen Instructions: As many of our customers did not realize they needed to create a PREP Payment Cover Page we have provided new instructions on the Create A Package screen which we hope will better direct our customers. Just click on the “Suggestions” link at the bottom of any PREP webpage to send us your suggestions on how we can improve the PREP System. Reminder: Please CLIP, Don’t Staple! If you have any questions about PREP, please call the PREP Help Line at (914)995-3111. The Office of Westchester County Clerk Timothy C. Idoni In Dutchess County, mortgages are currently subject to the basic, additional, special additional, and county mortgage recording taxes at the combined rate of $1.30 for each $100.00 secured by the mortgage. Effective December 1, 2009, Dutchess County will no longer impose the county mortgage recording tax of $.25 for each $100.00 secured by the mortgage. Therefore, as of December 1, 2009, the rate of mortgage recording taxes imposed on the recording of mortgages on real property located in Dutchess County will be $1.05 for each $100.00 secured by the mortgage. Mortgages covering properties located in more than one locality In certain cases, mortgaged property may be located entirely in New York State but in more than one locality. For example, the mortgaged property may be located in two or more counties. In such cases, the combined rates of tax may vary. In cases where the tax rates vary, a taxpayer may elect to compute and pay the tax as if the property were located entirely in the locality in which the greatest amount of tax is imposed. Alternatively, the taxpayer may file Form MT-15, Mortgage Recording Tax Return, and compute the mortgage recording tax at the applicable rate in each locality. To obtain Form MT-15, download a copy from our Web site at www.nystax.gov. NOTE: A TSB-M is an informational statement of existing department policies or of changes to the law, regulations, or department policies. It is accurate on the date issued. Subsequent changes in the law or regulations, judicial decisions, Tax Appeals Tribunal decisions, or changes in department policies could affect the validity of the information presented in a TSB-M. As of January 1, 2010, land records submissions must be supported by cover pages and tax forms created on the Westchester County Clerk’s PREP System. What is the PREP System? The Property Records Electronic Portal (PREP) System is a web-based application from which customers are required to create cover pages and tax forms for documents submitted to the Office of the Westchester County Clerk after January 1, 2010. Why has Westchester created the PREP System? The PREP System was created in order to increase operational efficiency, reduce the number of rejected documents and shorten recording time for land records. There are no additional fees associated with the use of the PREP System. Will I have to use the PREP System? Yes. If you wish to present a land records document for recording by our office after January 1st, it must be accompanied by cover pages and tax forms created on the internet through the PREP System. Will I be able to try out the PREP System out before January? Beginning October 1 st, the PREP System will be available to users who wish to simply test it out or begin using it to create cover pages and tax forms for actual document submissions. We encourage you to begin using the system for your submissions so that you grow familiar with the entire process from creation to recording. Will training be available? The Office of the Westchester County Clerk will conduct over twenty free training sessions in White Plains between late September and the end of the year and at least two sessions a week for the first few months of 2010. In addition, the County Clerk and his staff are working with local bar associations and the title industry to provide a series of Continuing Legal Education (CLE) seminars throughout the county. A calendar of training sessions appears on the back of this sheet. To sign up for a training session, please contact Rosia Blackwell Lawrence at (914)995-3082. What if I have not attended a training session and am having trouble submitting my document? You can always visit our office and a staff member will guide you through the process on one of our public computers. You will be able to create your cover pages on site in our office. We will also have staff members available to assist with questions over the telephone. Will the current Land Records Recording Sheet still be required? No. The cover page created on the PREP system will replace the current Land Records Recording Sheet. Questions about PREP? Please call Deputy County Clerk John Allen at (914)995-4217 or email him at jjab@westchestergov.com. To view the whole memo and a calendar of trainings, click here (MS Word file).
On January 27, 2009 Governor Paterson signed new power of attorney legislation as Chapter 644 of the Laws of 2008. The law drastically changes the existing power of attorney law. The new law becomes effective September 1, 2009. The present power of attorney forms may be used until the effective date of the new power and will be recognized for any transactions undertaken pursuant to the power until terminated or revoked. There is no substitute for actually reading the new legislation but we would like to highlight some of the major changes. (1) The new form statutory short form power of attorney can be found in newly enacted Section 5 – 1513 of the General Obligation Law (“GOL”). (2) The power of attorney is durable unless it expressly provides that it is terminated by the incapacity of the principal (GOL Section 5-1501 (A)(1)). (3) The agent must now sign the power (GOL 5-1501 B (c)) and his or her signature must be acknowledged in the same manner prescribed for the acknowledgement of a conveyance of real property. The power is not effective until the agent signs. (4) The power is not invalid solely because there has been a lapse of time between the date of the acknowledgement of the signature of the principal and the date of the acknowledgement of the agent (GOL 5-1501 B (c)). (5) The principal may now appoint a Monitor who has the authority to require the agent to provide to the Monitor receipts and other information about the agent’s execution of the agent’s duties (GOL 5-1509) (6) Unless specifically set forth in the power, an agent is not entitled to receive compensation from the assets of the principal for the responsibilities performed under a power of attorney (GOL 5-1506 (1)), but is entitled to receive reimbursement for reasonable expenses (GOL 5-1506 (2)). (7) A principal may designate two or more persons to act as co-agents. Unless the principal provides otherwise in the power, the co-agents must act jointly (GOL 5-1508 (1)). (8) The principal may supplement a short form power of attorney with a statutory major gifts rider (SMGR) to authorize major gifts (gifts in excess of $500.00). The short form power of attorney and the SMGR must be read together as a single instrument (GOL 5-1501 (14)). The form of the SMGR is set forth in GOL Section 5-1514. The SMGR must be signed and dated by the principal and the principal’s signature must be acknowledged in the manner prescribed for the acknowledgement of a conveyance of real estate and must be witnessed by two persons who are not named as permissible recipients of gifts. It must be executed by the principal simultaneously with the short form power of attorney – see GOL 5-1514. (9) There are also specific provisions that say it is unreasonable for third persons to refuse to accept a properly executed statutory power of attorney because it is not on the third party’s form (GOL 5-1504). (10) Where the power of attorney has been recorded pursuant to Real Property Law Section 294, the principal who is revoking the power, shall also record a written revocation. Notwithstanding the recording of a revocation, a third party must have actual notice of the revocation for the revocation to be effective. Section 5-1511 (6) of the GOL in the newly enacted legislation presently states that unless the principal provides otherwise, the execution of a power of attorney revokes any and all prior powers executed by the principal. The Assembly passed bill A8392 on May 19, 2009 amending this section to provide that the execution of a power of attorney does not revoke any power of attorney previously executed by the principal unless the principal gives written notice of revocation to the agent. Senate bill S5589 contains the same provision. The Senate, however, has not passed the bill and it does not appear that they will prior to September 1, 2009. We will keep you apprised of any new developments. There are many other provisions in the new law and you should read it to become familiar with them. Within the next week, we intend to have the new form of Power of Attorney and the major gifts rider on our website. If you have any question, do not hesitate to contact us. Read this in MS Word memo format.
EFFECTIVE 4/09 - The new IT-2663 forms for Nonresident Real Property Estimated Income Tax Payment for New York State have been added to our Forms page or are available below. Instructions are also available. IT-2663 Form (PDF) EFFECTIVE JANUARY 9, 2009, the Westchester County Clerk’s Office has increased Recording Fees. The new statutory recording fee is $45.00 for the document plus $5.00 per page. Please note the following: In addition to the increase noted above, the County will now be calculating the recording fee for recording a Satisfaction of Mortgage pursuant to RPL Sec. 321(3), which provides in relevant part: Therefore, if the Satisfaction of Mortgage seeks to discharge more than one mortgage the formula above is to be multiplied by the number of mortgages being discharged - even if those mortgages were consolidated. For example, recording a satisfaction of mortgage for a consolidated mortgage (2 mortgages) will now cost $90.00 ($45.00 for each mortgage) plus the per page and per cross reference charges. Please feel free to call any of our staff members if you have any questions. View this in memo form (MS Word) Section 522 of the laws of 2008 establishes an exemption from the Special Additional Mortgage Recording Tax on mortgages where the mortgagee is a New York State chartered credit union that has converted from a federal credit union on or after January 1, 2009. The Department of Taxation and Finance has issued a memo of notification of said exemption. Benchmark adopts and adheres to these Principles of Fair Conduct On July 8, 2008, Governor David Paterson signed a bill revising the Adverse Possession Law in New York State. In addition to revisions in the existing adverse possession law, Section 543 has been added to the RPAPL. Section 543 reads as follows: ADVERSE POSSESSION: HOW AFFECTED BY ACTS ACROSS A BOUNDARY LINE. 1. Notwithstanding any other provision of this article, the existence of De Minimus non-structural encroachments including, but not limited to, fences, hedges, shrubbery, plantings, sheds and non-structural walls, shall be deemed to be permissive and non-adverse. 2. Notwithstanding any other provision of this article, the acts of lawn mowing or similar maintenance across the boundary line of an adjoining landowner’s property shall be deemed permissive and non-adverse. This legislation was introduced in response to a recent decision finding in favor of a claim of adverse possession. Walling v. Przybylo (7 NY 3d 228 (2006). The revisions to the law removes the traditional requirement that property be cultivated or improved; rather it requires that the encroachment on the property be “sufficiently open to put a reasonable diligent owner on notice” or there must be a substantial encroachment. In addition, the existence of “De Minimus non-structural encroachments such as fences, hedges, shrubbery, plantings, sheds and non-structural walls” is now deemed to be permissive and non-adverse. Furthermore, mowing or similar maintenance across a boundary line is also deemed permissive and non-adverse. Further, the revisions require an adverse possessor to have a “claim of right” or a “reasonable basis for believing” that the property belongs to the possessor. According to its legislative sponsors, this bill is intended to limit the use of adverse possession to good faith disputes over title to real property. The law took effect immediately upon signing and will apply to claims filed on or after the effective date of July 8, 2008. Any questions, please call Jean M. Partridge, Chief Counsel. |
