Tuesday, 19 September 2017

Title Insurance: The CT Scan and MRI for your real estate transaction!

Written by Posted On Monday, 21 April 2014 18:58

Hallmark Abstract Service,title insurance,New York,closing costsThis article is from the pages of the Hallmark Abstract Service , New York website.

Are you asking yourself how medical techniques like a CT Scan or MRI have anything to do with a real estate transaction?

After all these tests were created for looking inside the body, in a non-invasive way, to determine if an injury or abnormality exists that the naked eye cannot see.

That is of course an excellent question and the answer is really quite simple.

In a typical transaction the prospective homebuyer or commercial real estate investor will look at a property both inside and out.

They will then determine whether for their specific needs it fits the criteria, run the numbers to determine financial feasibility all before finally coming to the decision to make an offer.

For an expanding family looking for additional space, variables that they will consider will include the number of bedrooms, size of the yard, finished or unfinished basement, surrounding neighborhood, school district and taxes.

The commercial building investor will look at different criteria that will vary to some extent depending on the category of building that they are considering (multifamily, mixed-use, warehouse, etc.).

Will the property be owner occupied, is there potential to change zoning, is it in an acceptable location, what is the quality and term of current leases, the historical and pro forma net operating income, the condition of the physical plant, access to highways and so on.

But once the property is targeted, who will be looking under the ‘hood’ beyond appearance and numbers on a page to determine what the underlying legal condition of the property is in terms of the ability of the current owner(s) to convey good and clear title to the new owner?

That is where your title insurance firm enters the equation!

They will do the historical work-up on a property’s chain of title to ensure that when the new buyer is handed the keys, that no entity can come back later and contest the fact that they in fact are the true and rightful owner!

Determining clear title is also going to be of particular interest to anyone who lends money to the new buyer in the form of a mortgage because the subject property is serving as that lenders collateral. This is critical if for some reason the property owner defaults and the lender needs to foreclose.

The last thing they would want to learn is that the free and clear or ‘unencumbered collateral’ that they thought they had was in reality encumbered by someone or something else.

The title company makes sure that does not happen and provides insurance that guarantees that fact. Have the taxes been paid, are any prior mortgages not satisfied or are there any liens on the building? All critical questions and all taken care of prior to the closing by the title company in addition to many others.

It is therefore also extremely important to make sure that the underwriter of the title insurance policy has the financial means to pay claims when due! Companies like Chicago Title of the Fidelity Group that has over $1 billion in claims paying reserves.

Bottom-line? Pay close attention to the firm that is being used for this extremely critical function and, if you have any questions, please feel free to contact Hallmark Abstract Service and we would be happy to answer them (This email address is being protected from spambots. You need JavaScript enabled to view it. or 516.741.4723)!


Buyers of Residential or Commercial Real Estate in New York State or anyone refinancing an existing mortgage there can potentially save hundreds of dollars in closing costs with Hallmark Abstract Service! Click here to learn more.
Attorney’s and mortgage professional who have questions about HAS or the way in which we conduct our business please contact Michael Haltman by phone at 516.741.4723 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..
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Michael Haltman

Hallmark Abstract Service provides title insurance for both residential and commercial real estate transactions in New York State.

Hallmark Abstract President Michael Haltman is also extremely involved with the combat veterans 501(c)(3) Heroes To Heroes Foundation, serving as the Board Chair.

Hallmark Abstract Service

In 2008 we opened our doors focused on two primary goals:

Number one was to be a title insurance company that would provide clients with a superior finished product that completely protects their interests for what will likely be one of the largest transactions of their lifetime.

Number two was to insure that the experience of working with Hallmark Abstract Service was as easy and seamless as possible for all parties involved in the transaction!

From the number of satisfied clients who come back to Hallmark Abstract Service time after time for their title insurance needs, the evidence bears out that we have accomplished these two goals in the past and will maintain our client centric focus far into the future!

Michael Haltman

Post 1984 MBA in Finance from the State University of New York at Albany that concentrated on the tax-exempt market, Michael became a municipal bond analyst at Shearson/Lehman Brothers tasked with following general obligation issuers on the city and state level as well as housing bonds secured by mortgage pools.

This experience at Shearson/Lehman Brothers followed by stints at PaineWebber and Citigroup provided a broad framework and understanding of the real estate and mortgage markets.

As CEO of Exeter Commercial which underwrote and funded commercial mortgage loans as a correspondent lender, title insurance played a critical role in both the underwriting and closing process.

In 2008 recognizing both an opportunity and need, Hallmark Abstract Service was born.


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