Buying or selling in Merrick comes with plenty of moving parts, and title insurance is one you don’t want to overlook. You want confidence that your ownership is protected and that there are no hidden liens or claims waiting to surface. In this guide, you’ll learn what title insurance covers, what it excludes, how pricing works on Long Island, who typically pays, and how to avoid surprises at closing. Let’s dive in.
Title insurance basics
Title insurance is a one-time premium you pay at closing that protects you against many pre-existing title defects or liens tied to the property. If a covered issue appears after you buy, the policy can pay to defend your title and cover losses up to the policy amount.
There are two separate policies:
- Owner’s policy. Protects your equity up to the policy amount, usually the purchase price. It is optional but strongly recommended.
- Lender’s policy. Protects the lender up to the loan amount. Your lender will usually require this if you finance the purchase.
Title insurance covers problems that existed before the policy date and were unknown or unrecorded. It does not cover physical condition or future changes in value.
Coverage: what it includes
While each policy has specific terms, common covered risks include:
- Forged or improperly executed deeds or documents.
- Unknown or missing heirs and errors in interpreting wills.
- Undisclosed or unrecorded liens, including certain judgments or tax liens that predate the policy.
- Recording errors or mis-indexed documents in the public record.
- Improperly probated wills or fraudulent conveyances.
- Mistakes in public records that affect ownership.
If a covered defect emerges, the insurer typically pays defense costs and covered losses within policy limits.
Exclusions and limits to know
Title insurance does not cover every risk. Expect these common exclusions in New York:
- Items listed as exceptions on Schedule B of the policy or commitment. These are matters shown in the public record unless cleared before closing.
- Conditions a survey or on-site inspection would reveal, such as boundary lines or visible encroachments, unless specifically endorsed.
- Zoning or building code violations, or limits on use, unless endorsed.
- Environmental contamination, which is generally excluded.
- Matters that arise after the policy date, like future liens or encroachments.
Review your title commitment carefully with your attorney, especially Schedule B exceptions, so you know what will and will not be insured at closing.
Endorsements worth considering
Endorsements are optional add-ons that expand coverage. Availability and pricing vary by title company, property type, and state. In New York, you and your attorney may consider:
- Survey or boundary endorsement. Provides protection for certain survey-related defects or mislocated improvements.
- Zoning endorsement. Addresses losses from certain zoning issues or use limitations.
- Mechanic’s lien endorsement. Helpful when recent work may have been done without full payment.
- Access endorsement. Insures against loss of the right of access to a public street.
- Restrictive covenant endorsements. Addresses certain risks from recorded restrictions.
Nassau County specifics
- Regulation. Title insurers and agents in New York are licensed and overseen by the New York State Department of Financial Services.
- Records. Searches for Merrick properties rely on Nassau County Clerk land records and court judgment indices. Older documents can be harder to locate or may use older indexing systems, which is one reason experienced examiners matter.
- Taxes. New York State imposes transfer and mortgage recording taxes, and certain high-value sales may trigger additional state taxes. Confirm the current rules for your transaction with your lender, title company, or tax authorities.
- Who pays the owner’s policy. In many parts of New York, including some Long Island communities, the seller traditionally pays for the owner’s policy. This is not universal. It is negotiable and can vary by town, market conditions, and contract terms. Confirm expectations early in negotiations.
Costs in Merrick: how pricing works
Title insurance is a one-time charge paid at closing. The premium depends on the insured amount:
- Owner’s policy. Usually keyed to the purchase price or a stated amount.
- Lender’s policy. Based on the mortgage loan amount.
In addition to the basic premium, you will see related closing charges. Because fees vary by title company, endorsements, and local recording costs, the only reliable estimate is a written, itemized quote for your specific property and loan.
- Expect the owner’s policy cost to be small relative to the purchase price but not trivial. Many buyers pay several hundred to several thousand dollars depending on price.
- The lender’s policy typically costs less than or similar to the owner’s policy, tied to the loan amount.
- Do not rely on national averages. Ask for a local quote.
Typical add-on title and closing fees
Your itemized quote may include:
- Title search and examination
- Title company settlement or closing fee
- Endorsements you select
- Recording fees payable to the Nassau County Clerk
- Courier or overnight delivery charges
- Escrow or administrative fees
Request that your title company provide a clear worksheet showing both premiums and all pass-through recording costs so you can plan your cash to close.
Local title risks in 11566
Merrick’s housing stock includes many older homes and longer chains of ownership, which can increase the chance of legacy issues. Common local risks include:
- Unreleased mortgages and liens that were never properly satisfied.
- Judgment liens or state and federal tax liens recorded against prior owners.
- Unknown heirs or gaps in earlier conveyances.
- Easements or access issues, including shared driveways or utility easements that may not be obvious on a walk-through.
- Boundary disputes and encroachments from fences, sheds, or additions near lot lines.
- Building permit or code issues for additions or alterations done without permits, which can lead to municipal orders or potential liens.
- Mechanic’s liens from unpaid contractor work completed before the sale.
- Coastal considerations for South Shore properties, including flood zone designations and public trust or boardwalk issues that can affect insurability. Flood insurance is separate from title insurance.
A current survey and appropriate endorsements can help address several of these risks. Your attorney can advise what makes sense for your specific property.
Timeline and process to expect
- Title search. Often begins right after the contract is signed. Straightforward suburban properties may produce a title commitment in about 3 to 10 business days. Complex histories or backlogs can add time.
- Title commitment. You will receive a preliminary report listing what the insurer is willing to cover and any exceptions that must be resolved. Review Schedule B carefully with your attorney.
- Clearing issues. Items like unreleased liens or old mortgages may need to be cleared before closing. Some concerns can be insured over with an endorsement. Clearing can extend your timeline.
- Closing and policies. The title closing is handled by a title company attorney or settlement agent. The lender’s policy is typically issued right away and the owner’s policy follows after recording.
Buyer steps: a quick checklist
- Confirm who pays. Ask early about local custom and negotiate the owner’s policy responsibility in your contract.
- Get itemized quotes. Request at least one written title estimate for your property and loan amount. Make sure it lists premiums, endorsements, and all recording fees.
- Review your commitment. Go line by line through Schedule A and Schedule B with your attorney. Understand every exception.
- Choose endorsements. Consider survey, access, zoning, and mechanic’s lien endorsements where relevant, especially for older homes or properties near the coast or lot lines.
- Coordinate with your lender. Verify any title company restrictions and required endorsements.
Seller steps: a quick checklist
- Gather documents. Provide details on prior mortgages, paid-off loans, tax payments, and any recorded releases.
- Share surveys and permits. If you have a survey, certificates of completion, or proof of contractor payment, provide them. This can speed clearing.
- Price your proceeds. If custom or your contract requires you to pay the owner’s policy, get an early estimate to factor into your net sheet.
Claims and how protection works
If a covered defect surfaces after closing, notify the title company and your attorney promptly. The insurer may defend your title, cure the defect, pay the claim, or take other steps as outlined in the policy. Coverage is limited to the policy amount, and exclusions and exceptions apply. Keep your policy documents accessible in case you need to make a claim.
Bottom line for Merrick buyers and sellers
Title insurance is a single, important purchase that protects your ownership from unknown, pre-existing issues. In Merrick and across Nassau County, costs and who pays can vary. The smartest path is to get an itemized quote early, review the commitment with your attorney, and select endorsements that match the property’s risks, especially for older or coastal homes.
If you want a local, step-by-step plan for your next Merrick purchase or sale, connect with a neighborhood-focused advisor. For guidance tailored to Long Island’s South Shore, reach out to Robyn Goldowski.
FAQs
What is title insurance for a Merrick home purchase?
- Title insurance is a one-time premium paid at closing that protects you against many pre-existing title defects or liens and typically covers defense costs and losses up to the policy amount.
What is the difference between owner’s and lender’s policies?
- An owner’s policy protects your equity, usually up to the purchase price, while a lender’s policy protects the lender up to the loan amount and is generally required if you have a mortgage.
Who usually pays for the owner’s policy in Nassau County?
- In many New York and Long Island transactions the seller often pays for the owner’s policy, but it is not universal and can be negotiated in the contract.
How much does title insurance cost in 11566?
- Cost depends on the purchase price or loan amount plus endorsements and recording fees; request a written, itemized quote from a local title company for the only reliable estimate.
What does title insurance not cover?
- It generally excludes items listed as exceptions on Schedule B, issues a survey or inspection would reveal unless endorsed, zoning or code violations without endorsements, environmental issues, and matters arising after the policy date.
How long does the title search and commitment take in Nassau?
- Clean suburban properties may receive a commitment within 3 to 10 business days, while complex histories or backlog can extend the timeline.
Do coastal or flood zone factors affect title coverage?
- Coastal properties can present unique access, easement, and public trust considerations; flood insurance is separate and you may want endorsements that address access or survey-related risks.
Do I need an owner’s policy if my lender requires one?
- A lender’s policy protects only the lender; an owner’s policy is optional but strongly recommended to protect your equity and legal rights.
How do I get a precise title cost estimate?
- Ask one or more local title companies for an itemized quote listing the owner’s and lender’s premiums, endorsements, search and exam fees, and recording charges specific to your property and loan.
