Dear Colleagues,
  

I am working with the New York State Land Title Association on a project to provide guidance to our industry regarding New York State Sales and Use Tax and title insurance (Information Service) charges.

 

One of the areas that we would like to provide some guidance on are sales tax issues with regard to the particular title-related charges commonly found Upstate versus Downstate, versus Western New York, and in TIRSA zone 1 versus zone 2. For example, in Zone 1, which encompasses much of northern and western New York, “the cost of searching” is not included in the title premium and a separate charge for such searching may be made as part of the charge for the policy. The charge for such searching when reckoned as part of the cost of the insurance policy is treated differently from a sales tax perspective, as compared to when it is a separate search not required for title insurance purposes. There are other local practice nuances which could be treated in varying ways, as well.

As I practice downstate, I am hoping to speak to / communicate with local title professionals about Zone 1 practices and issues such as: (i) in your area, what party generally undertakes the title research that is required for issuance of a title insurance policy, (ii) is the updating of an “abstract of title” part of a typical transaction in your area, (iii) what searches, if any, other than those required for title insurance purposes are typically ordered?

 

If anyone from the upstate or Western New York region would be happy to chat or email with me about the above topics in the next couple of weeks, please let me know. The aim is to match up our state's sundry real estate transactional practices and customs with the official sales tax guidance hitherto issued to us.

Thank you

Vince

vincent.danzi@amtrustgroup.com

Vincent G. Danzi

SVP & Senior Counsel

to post a reply: login - or - register