This post is to advise you of changes to the New York State TIRSA Rate Manual, 7th Revision effective 10/1/2024. This revision contains all changes approved by the Superintendent of the Department of Financial Services up to and including October 1, 2024. Attached to this Bulletin is the new revised Title Insurance Rate Manual for New York State.
The 7th Revision does not contain any changes to policy rate brackets or Zones. All rates, including any deviated rates are not affected by this manuals approval.
Material Changes in the 7th Revision:
Policy adoption: On 10/1/2024 only the ALTA form of 2021 Owners and Loans policies set forth in the 7th revision will be available to be issued. All 2006 owners and lenders policies forms have been discontinued and cannot be issued in NY. A comparison chart provided by ALTA is attached herewith to this bulletin. (ALTA Owners Policy Comparison; ALTA Loan Policy Comparison).
The following are the material changes to endorsements in the 7th Manual revision. The following endorsements no longer valid and cannot be issued in the State of New York.
Removed Endorsements
- TIRSA Fannie MAE Balloon Mortgage Endorsement
- TIRSA Industrial Development Agency or Similar Public Benefit Corporation Transfer to Beneficial Owner Endorsement
- TIRSA Junior Loan Policy Endorsement 1
- TIRSA Junior Loan Endorsement (Revolving Credit variable Rate) 2
- TIRSA Market Value Policy Rider (Owner’s Extended Protection Policy)
- TIRSA Policy Authentication Endorsement
- TIRSA Commercial Revolving Credit Endorsement for Commercial Credit Line Mortgages Which Secure a Maximum Principal Indebtedness of Less Than $3M (RCE-4)
The following 24 new endorsements expand the coverages offered within the State of New York.
New Endorsement
- AL TA 28-06 – Easement – Damage or Enforced Removal
- AL TA 28.1 – 06 – Encroachments – Boundaries and Easement
- ALTA 28.2 – 06 – Encroachments – Boundaries and Easement – Described Improvements
- AL TA 28.3 – 06 – Encroachments – Boundaries and Easement – Land Under Development
- ALTA 36 – 06 – Energy Project Leasehold / Easement Owner’s Policy
- ALTA 36.2 – 06 Energy Project Leasehold Owner’s Policy
- ALTA 36.4 – 06 Energy Project CC&R’s – Land Under Development – Owner’s Policy
- ALTA 36.6 – 06 Energy Project Encroachments (Owners and Loan Policies)
- ALTA 36.7 – 06 Energy Project – Fee Estate Owner’s Policy
- ALTA 36.1 – 06 Energy Project Leasehold Loan Policy
- ALTA 36.3 – 06 Energy Project Leasehold Loan Policy
- ALTA 36.5 – 06 Energy Project CC&R’s – Land Under Development – Loan Policy
- ALTA 36.8 – 06 Energy Project – Fee Estate – Loan Policy
- TIRSA Mezzanine Financing Assignment of Proceeds
- ALTA 35 – 06 Minerals – Buildings
- ALTA 35.1 – 06 Minerals – Improvements
- AL TA 35.2 – 06 Minerals – Described Improvements
- AL TA 35.3 – 06 Minerals – Land Under Development
- ALTA 48 Tribal Waivers and Consents Endorsement
- ALTA 27-06 Usury
- TIRSA 3 – 06 Zoning
- AL TA 40-06 Tax Credit – Owner’s Policy
- ALTA 40.1 – 06 Tax Credit Defined Amount – Owner’s Policy
- TIRSA Identified Risk (Owners and Loan)
The following 12 endorsements are replaced by 15 endorsements.
Replaced Endorsements >> New Endorsements
- TIRSA Co-Insurance Endorsement >> ALTA 23-06 Co-Insurance Endorsement, ALTA 23.1-06 Co-Insurance Multiple Policies Endorsement
- TIRSA Contiguity Endorsement >> ALTA 19-06 Continuity- Multiple Parcels Endorsement, ALTA 19.1-06 Contiguity – Single Parcel Endorsement, ALTA 19.2-06 Contiguity – Specified Parcel Endorsement
- TIRSA First Loss Endorsement >> ALTA 20-06 First Loss – Multiple Parcel Transactions Endorsement
- TIRSA Land Same as Survey Endorsement >> ALTA 25.1-6 Same as Portion of Survey Endorsement, ALTA 25-06 Same as Survey Endorsement
- TIRSA Leasehold Endorsement-Loan Policy >> ALTA 13.1-06 Leasehold Loan Endorsement
- TIRSA Leasehold Endorsement – Owner’s Policy >> ALTA 13-06 Leasehold Owner’s Endorsement
- TIRSA Option Endorsement >> ALTA 46-06 Option Endorsement
- TIRSA Tax Parcel Endorsement – Single Tax Lots >> ALTA 18-06 Single Tax Parcel Endorsement
- TIRSA Tax Parcel Endorsement – More than One Tax Lot >> ALTA 18.2.06 Multiple Tax Parcel Endorsement
- TIRSA Variable Rate Mortgage Endorsement >> ALTA 6-06 Variable Rate Mortgage Endorsement
- TIRSA Variable Rate Mortgage -Fixed Rate Conversion Endorsement >> ALTA 6-06 Variable Rate Mortgage Endorsement
- TIRSA Variable Rate Mortgage-Negative Amortization Endorsement >> ALTA 6.2-06 Variable Rate Mortgage – Negative
The Cluster Endorsement is replaced with:
- ALTA 12-06 Aggregation Endorsement – Loan Policy
- ALTA 12.1-06 Aggregation Endorsement – State Limits – Loan Policy
The existing TIRSA 9 is replaced with the below referenced 9 series endorsement structure.
- ALTA 9.9-06 Private Rights- Owner’s @ Residential $50 / Non-Residential $250
- ALTA 9.8-06 CC&Rs- Land Under Development – Owner’s @ Issued with Owners: Greater of $500 or 5% of Owner’s Policy Charges
- ALTA 9.7 Restriction, Encroachments – Mineral Land Under Development Loan Policy
- Simultaneous with ALTA 9.8-06: Greater of $250 or 5% of the Loan or Construction Mortgage Policy Charges
- Not simultaneous with ALTA 9.8-06: Greater of $500 or 5% of the Loan or Construction Mortgage Policy Charges
- ALTA 9.1-06 CC&Rs- Unimproved Land-Owner’s @ Residential $50 / Non-Residential $250
- ALTA 9.2-06 CC&Rs- Improved Land-Owner’s @ Residential $50 / Non-Residential $250
- ALTA 9.6-06 Private Rights – Loan @ Residential $50 / Non-Residential $250
- ALTA 9.6.1-06 Private Rights – Current Assessments – Loan @ Residential $50 / Non-Residential $250
- ALTA 9.3-06 CC&Rs – Loan @ Residential $50 / Non-Residential $250
The 7th revision contains the following 13 endorsements which have been re-written to align better with the newly adopted ALTA 2021 form of owners and loan policies.
The following Endorsements have been re-written to reflect the 2021 ALTA owners and loan policy forms.
Rewrite
- TIRSA Increase in Amount of Insurance Endorsement – Owner’s Policy
- TIRSA Market Value Endorsement for Owner’s Policy Covering Owner- Occupied One to Four Family Dwellings, Including Residential Condominium Units or Cooperative Apartments
- TIRSA New York City Development Rights Endorsement
- TIRSA Partial Release of Mortgaged Premises Endorsement
- TIRSA Residential Revolving Credit – Owner Occupied One to Six Family Endorsement (RCE-1)
- TIRSA Commercial Revolving Credit Endorsement for Commercial Credit Line Mortgages which Secure a Maximum Principal Indebtedness of less than $3M (RCE-2)
- TIRSA Commercial Revolving Credit Endorsement for Commercial Credit Line Mortgages which Secure a Maximum Principal Indebtedness of $3M or more (RCE-3)
- TIRSA Residential Mortgage Endorsement 1 to 4 Family
- TIRSA Reverse Mortgage for Mortgages Made Pursuant to Sections 280 and 280-A of the Real Property Law Endorsement
- TIRSA Successor in Ownership of Insured Mortgage Endorsement Loan Policy
- TIRSA Interest Rate Swap Agreement -Additional Interest Defined Amount Endorsement (Swap Endorsement)
- TIRSA Joint and Several Liability Endorsement
- TIRSA Additional Interest Endorsement
The TIRSA RATE MANUAL-SEVENTH REVISION, effective OCTOBER 1, 2024 contains the following material rule changes:
SECTION 2: RULES
(A) All charges, fees and premiums set forth in this manual, pursuant to Section 2314 of the Insurance Law, are mandatory and approved by the Superintendent of the Department of Financial Services and cannot be waived, reduced, or increased, except as provided in Section 2339 of the Insurance Law.
(B) Any rate, premium, fee, or other charge set forth in this manual shall apply to any transaction closed on or after the effective date of any change in such rate, premium, fee, or other charge, even though application may have been made prior to the effective date of this manual.
(C) (1) No form of Policy, Endorsement, or other coverage may be issued which varies the covered risks, conditions, or exclusions of a Policy unless first approved by the Superintendent of the Department of Financial Services. Approved Policies and Endorsements are set forth in Part IV below. No form of Policy not approved by the Department of Financial Services may be issued or updated by Endorsement or otherwise. Notwithstanding the above, nothing herein shall limit a Company from deleting or limiting a covered risk.
(2) Except as set forth expressly authorized in the TIRSA approved Rate Manual, no affirmative coverage, no additional insurance or express insurance may be added to or provided in the Policy, whether on Schedule B, an Endorsement or otherwise.
Please note the stated prohibition from providing affirmative coverages not specifically authorized by the rate manual.
Definitional changes:
Several definitions have changed only to reflect the new policy forms or endorsements. The following material definitions have changed:
Commercial Real Property: real property, including vacant land, located in New York State, and which is not Residential Real Property, as defined below.
Company: each title insurance corporation to which this manual applies and any title insurance agent acting on behalf of such title insurance corporation in the transactions described herein.
Consideration: anything of value paid or transferred in exchange for Residential Real Property or Commercial Real Property, or interest therein, plus the amount of any lien or encumbrance, whether or not assumed or taken subject to, remaining on the Residential Real Property or Commercial Real Property, or interest therein, at the time of transfer, except as otherwise expressly set forth in this manual (see Section 9(C): “Construction Mortgage Insurance, Construction Mortgage Conversion Insurance, Minimum Insurance”; Section 12(B)(3): “Mortgage Refinance Transactions and Subordinate Mortgages”; Section 13(B)(3): “Mortgage Modification and Construction Mortgage Modification ”; and Section 28: “Continuation of Insurance”).
Construction Loan: a building loan, a project loan or any other loan which is advanced in stages, which loan is secured by a Mortgage, the lien of which Mortgage is insured under a Construction Mortgage Policy and for which a Construction Loan Endorsement is to be issued upon each advance of loan proceeds.
Identical Property: the same Residential Real Property or Commercial Real Property (or a portion thereof and/or no additional or other Residential Real Property or Commercial Real Property) as is described in a specifically cited (i) title Policy or (ii) instrument of conveyance, including, without limitation, a deed, a Mortgage, a lease or sublease (or a memorandum thereof) and which specifically cited instrument of conveyance is recorded or to be recorded, whether or not such Residential Real Property or Commercial Real Property or portion thereof has been subdivided or submitted to a condominium regime.
Investor: a person or entity acquiring a direct or indirect interest in an entity that is the owner or lessee of an estate or interest in Residential Real Property or Commercial Real Property insured.
Pending Disbursements Exception: an exception, required in every Construction Mortgage Policy, containing the language specified in Section 2, item (L) of the Rate Manual.
Residential Real Property: real property located in New York State and improved by
- A. a one- to four-family dwelling; or
- B. an individual condominium unit used as a dwelling; or
- C. an individual cooperative apartment/unit used as a dwelling.
- D. Both (B) and (C) above may include one or more additional units with a use that is ancillary to the use as a dwelling unit (e.g., a maid’s apartment, a parking space or storage unit);
- E. Any dwelling described in (A), (B) or (C) above may be Residential Real Property notwithstanding the use of a portion thereof for office purposes. The use of a portion of a dwelling for a use other than dwelling or office use shall preclude a determination that the same is Residential Real Property.
Residential Real Property does not include land that is vacant land at Date of Policy.
Simultaneous or Simultaneously: occurring on the same calendar day. As always, if you have any questions about Title Insurance or if there is anything else we can do to assist you, please contact us at (212) 239-8789.
This bulletin is sent courtesy of CB Title Agency of NY, LLC and Stewart Title. This article is for informational purposes only and is not intended to provide legal advice, but rather to provide insight into legal developments and issues that may be useful to our clients and friends. In no circumstance is this article intended to be a full treatment of the above subject matter. Reader is advised to obtain additional information as noted