real estate, Title Insurance New York

If buying real estate was a board game, here are the rules!

2013 Top 10 US housing markets

The process of buying a residential or commercial property can be daunting!

And, in the same way that we have to learn a great many things in life, wouldn’t it be helpful to have the steps we need to take when preparing to buy our dream home or income producing property right in front of us when planning our next move?

In the form of a board game, here are the steps courtesy of Pat Griesmeyer from Coldwell Banker. (If anyone would like a hardcopy of the original faxed to them simply request it at orders@hallmarkabstractllc.com)

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Real property, Surveying, Title Insurance New York

Why a property survey is so critical!

Property-Boundaries

Why having a survey to the property that you own or may be thinking of buying is so critical!

This is a great article to share with clients or with any individual with an interest in real estate.

‘Setting Boundaries With a Land Survey’

Setting Boundaries: Why a Survey of Your Property is One of the Most Important Pieces of Paper You Should Own

Planning on renovating or adding on? Buying a new property? Hiring a surveyor to create an accurate and complete record of your property can be an essential investment. An accurate and complete survey can save you time, money and a wheelbarrow of grief.

A survey could be the most important piece of paper you may ever own. Ok, maybe that’s a bit of an exaggeration—the deed to your house, passport, driver’s license, marriage certificate—these are all important, but a survey of your property? If you are developing your property, an inaccurate or incomplete survey can cause project delays
and create costly and unwanted surprises.

Think you know where your property line is? Are you sure? A proper survey will show which side of the property line that neighbor’s fence is on, who’s tree it really is, and document easements that can affect your ability to develop your property. An accurate survey will allow you to calculate the area of your lot, which can affect the size of additions and new construction that you may engage in.

All in the details

You may already have what is known as a “plot plan” of your property. This is not the same as a survey. A plot plan typically shows the footprint of the house and its location on the site and often not much else. A survey is far more detailed and contains elements essential to getting through the zoning permit process, usually the first step in a construction project.

A complete survey will show measured property lines (expressed in “metes and bounds”), significant topography, easements, site utilities, additional structures such as garages and sheds, wells, septic fields, stone walls, large trees, and landscape elements such as rock outcroppings.  This requires not only careful study of the property directly at the site, but research into town records to make sure nothing is overlooked, especially elements such as wetlands and easements.

A proper survey can save you time and money

Inaccuracies and missing information can lead to unwanted delays in the design and permitting process.  The zoning approval process is a critical element in a project schedule—having a design rejected because of incomplete site information can add weeks or months to a project.

They can also lead to the need for costly changes in the design. Adam Hoffman of Godfrey-Hoffman & Hodge in North Haven relates the following story illustrating the consequences of a poorly executed survey:

“The original surveyor did an incomplete recording the topography of the site. The house was built and the driveway as designed was found to be much steeper than the code allowed.  In addition, the surveyor neglected to include space for a 4% maximum grade at the garage to prevent cars from “bottoming out.”  Since the house was already constructed, the owner had no choice but to install a serpentine driveway that took up a large and unsightly portion of the front yard.  Could the owner have sued the surveyor?  Yes, but the original surveyor had no insurance.  The owner’s chances of recouping anything were slim and he was left with an unattractive and devalued property.”

In another example Hoffman cites, an inaccurate survey was used to build a house.  It was later found that the property lines were placed incorrectly and a corner of the site was located in the middle of a public roadway.  The owner wanted to take out a mortgage on his property but no bank would accept him as a result.  The owner had the option to wait for 3 years for the boundary lines to qualify as “pre-existing non-conforming” (something usually applicable to older properties), but the long wait wouldn’t guarantee he could still obtain favorable mortgage rates.

“As an architect, I have dealt with homeowners reluctant to spend the money on a survey. One property owner wanted to build a house in the middle of a large piece of land, far from any setbacks.  As a result, he was convinced he could do without a survey until it was time to submit plans for permit. Without a drawing showing the topography of the area for the new house however, we were unable to do more than guess at the relationships of the grade levels to the first floor and walk-out basement. We didn’t obtain accurate topographic information until further down the line, which led to time-consuming changes in the drawings, adding delay to the project. In addition, only by precisely locating the new house in relation to the road were we able to obtain accurate pricing from contractors for the cost of the new driveway.”

A Good Surveyor is Thorough

Some surveyors depend on real estate attorneys to provide title information.  Hoffman tells another story about a major retailer that wanted to build a new store.  When he went to stake out the site, he walked the property and noticed a well-used path traversing the property. This path was not shown on any drawing on file.  Under many local laws, such paths, if old enough can fall under “adverse possession” and disallow development of the site. Wanting to avoid delays and legal fees, the retailer is looking for another location.

On another commercial project, during a thorough title search, Hoffman discovered a previously unnoticed easement in the location for a new addition. The owner had several options: negotiate for the revision of the easement or submit the project to a redesign. Either way, money and time will need to be spent to rectify the situation.

How to Find a Great Surveyor?  

Architects, real estate attorneys, realtors, all can be good resources.  Check with the BBB to check for any complaints.  Ask for references.  Find a well-established firm that isn’t likely to go out of business.  Verify that they have insurance.  Most importantly: don’t necessarily go with the cheapest option.  A proper survey takes time and expertise.

Your property is your investment.  A proper survey is one of the most valuable tools you can have when it comes time to build, add-on or renovate.

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property buyers - New York State, real estate attorney, title insurance

Title insurance: Buyers do have a choice!

Hallmark Abstract Service New York State title insurance

If you or someone you know is buying residential or commercial property wouldn’t reducing the closing costs be a very good thing?

Well you are legally entitled to try!

When you sit at a real estate closing table with your attorney as the purchaser of a piece of real estate, at least in New York, it can seem as if you have just entered a marathon of check writing.

The fact of the matter is that there is really no way around the majority of these expenses, but what if you could try and reduce the amount of money that you need to pay the company providing the title insurance?

A property buyer is free to choose their title insurance provider!

You may not realize that you have this option because the attorney representing you will typically take care of ordering the title insurance, but using that firm may not always be the most cost effective way to go!

While the actual title insurance premium is set by the State of New York and is non-negotiable, there are other fees involved with generating the title that can vary greatly from firm to firm.

These fees include those for searches and items such as a property survey.

While one company might charge $300 for a basic search that costs them $150, another firm may simply charge the property buyer the cost, $150.

If you were to combine all of these required additional searches and other items, also known as “junk fees”, and then add together all of the mark-ups being charged by some firms over and above their cost, the excess expense for the property buyer could be well in excess of $1,000.

Once again property buyers often assume that they have no say in the choosing of the company that will be providing the title insurance for their transaction.

But they can!

It may take an extra phone call to ask a title insurance firm what the title bill would be for your given transaction and then compare it to the company that your attorney or bank is recommending that you use.

But if you have the potential to save hundreds or maybe even over $1,000, wouldn’t it be worth it to try?

Hallmark Abstract Service LLC
Michael Haltman, Partner
131 Jericho Turnpike, Suite 205
Jericho, New York 11753
516.741.4723 (P)
516.741.6838 (F)

Email:       mhaltman@hallmarkabstractllc.com
Website:   Hallmark Abstract Service
Blog:         The Hallmark Abstract Sentinel

At Hallmark Abstract Service, we work harder to make your closings easier!

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