Taxes, Real Property
The Company generally does not insure tax titles unless a judicial foreclosure occurred and the owner and foreclosed lienholders were personally served, or unless you also secure a deed from the owner and release from such foreclosed lienholders. You must confirm that all taxes and assessments that are liens on the land are satisfied or excepted (by general or specific exception).
Possible Retroactive Taxes
Unless all of the land is properly assessed and all the taxes and assessments paid thereon, the Policy when issued will contain the following exception:
“Retroactive assessments for taxes against the land, and all interest and penalties which may accrue.”
Comment: You should use this exception if part of the land or improvements on the land have not been included in assessments (e.g., house not included; abandoned street not assessed).
Payment of Taxes as of Policy Date
The Company requires the payment of all taxes and assessments and any penalties and interest, due and payable at Date of Policy.
Comment: You should use this exception if you will not close the transaction.
Payment of Prior Taxes
The Company requires the payment of all taxes and assessments and any penalties and interest for the year ______ and prior years.
Comment: This is an alternative method to require the payment of all taxes.
Tax Sale – Require Deed from Last Record Owner
The interest of _________________(“Taxpayer”) was acquired by conveyances originating from that Tax Deed recorded ________. The Company requires for its review a satisfactory Deed from the Taxpayer. At that time, the Company may make additional requirements or exceptions.
Comment: You should require a deed from the taxpayer (last record owner) if the tax foreclosure was a summary (nonjudicial) sale, or if the taxpayer was not personally served, or if the foreclosure was defective.
The payments for _____________ assessments are now delinquent. The amount necessary to bring the payments current is: $________ and any penalties and interest, if paid by ____________.
Comment: This requirement describes specific, known delinquent assessments.
Awaiting Tax Report
For Informational Purposes Only: A report on taxes and assessments has been ordered. The Company will send a tax supplement when it is received.
Comment: This note may be used if a tax search has not yet been secured.
Tax lot variations
Tax lots do not conform to record description.
Instrument to contain Section, Block & Lot in W
Attention is called to the fact that any instrument covering premises in the County of Westchester must be endorsed with the section, block and lot of the tax map before it will be acceptable for recording, pursuant to RPL Section 331.
Where transfer of tax lien was heretofore forec
Tax search discloses a transfer of tax lien No.__(#)__ which was foreclosed, but the tax record does not so indicate. Certified copy of referee’s deed in action to foreclose transfer of tax lien is required to be forwarded to the City Collector with a request that the said lien be marked foreclosed in order that future bills affecting said premises may be free of the notation “arrears sold.”
Where transfer of tax lien was barred and cut o
Tax search discloses a transfer of Tax Lien No. __(#)__ which was cut off and barred in the foreclosure of a superior tax lien or by proceeding In Rem, but the tax record does not so indicate. The records of the tax office must be marked to show this lien as barred and cut off in order that future bills affecting the premises may be free of the notation “arrears” or “arrears sold.”
Recorded list of delinquent taxes as notice of
Premises shown as Tax __(Block and Lot)__ on the tax map of _____________ appears on a List of Delinquent Taxes recorded on __/__/__, in the office of __________ County Clerk in [Liber _____, page ____.] Proof is required of the payment of said delinquent taxes. If a tax enforcement proceeding has been commenced, it must be discontinued against the premises, and all charges in connection therewith must be paid.
Additional Taxes Because of Improvements
Any possible additional tax assessment and any penalties and interest, because of construction and improvements.
Comment: If improvements have not been properly included in the current or prior years’ assessments, you should add this exception.
Subsequent Taxes Because of Change in Use
Subsequent assessments or taxes and any penalties and interest, due to any change in the land usage or loss of exemption.
Comment: You should use this exception if the land has been allowed special taxation or exemption and a change in use would cause retroactive assessments.
Retroactive assessments for taxes against the land, and all interest and penalties which may accrue.
Comment: You should use this exception if the land (or improvements) or a portion of the land (e.g., an abandoned road) has not been included in tax assessments.
The land is in ______________________ district and is subject to the payment of taxes or assessments levied by said district.
Comment: You should use this exception for information if the land is in a district disclosed in the public records.
Taxing District (Refer to Recording Date)
The land is in _________________________ district as reflected by the notice recorded _________________ and is subject to the payment of taxes or assessments levied by said district.
Comment: This is an alternative exception to use for information if the land is in a district disclosed in the public records.
Notice of Postponed Taxes
A lien to secure all sums due for postponed real property taxes and any penalties and interest, on said land, evidenced by a notice of lien recorded ________________.
Comment: You may use this exception if a notice of lien to secure postponed taxes (e.g., because of special use) is recorded.
City and County Taxes
General and Special City and/or County taxes, including any assessments collected with taxes, to be levied for the fiscal year 19___ - 19___ which are a lien not yet payable.
Comment: You may use this exception for city and county taxes if they are not otherwise excepted in a more general tax exception.
Rights of redemption in favor of _______________________ in connection with the suit to foreclose lien reflected by Deed recorded _______________ for a period of __________________ after ______________________________.
Comment: You may use this exception if the Company is willing to insure a tax foreclosure and if redemption rights have not expired.
General tax exemption
As premises herein are benefited by a tax exemption, policy will except the lien which may attach by reason of any restoration of real property taxes after transfer of title by the owner entitled to tax exemption.
General tax exemption (alternate)
Premises herein are listed as __(exempt/partially exempt)__ from real estate taxes. Upon transfer of title, premises are subject to taxation on the full assessed valuation and said additional taxes shall be levied from the date of the transfer from the owner entitled to the exemption and to whom said exemption was duly granted.
Tax exemption - One and two family residences -
Pursuant to Section 494 of the Real Property Tax Law, the (partial) exemption of the premises from taxation will terminate immediately upon transfer by the owner entitled to such exemption and said premises shall be taxed subsequent thereto at the full valuation without benefit of such tax exemption.
NYC only - Tax exemption and abatements
Policy will except all loss or damage arising from the imposition of any lien resulting from the restoration of real property taxes upon the premises or the rescission of tax abatements, as said exemption and/or abatement is provided for pursuant to the provisions of the Administrative Code of the City of New York.
Where tax search discloses water meters
Tax search discloses water meters which have been read to the dates indicated thereon. Policy will except subsequent meter readings from the date of the last reading.
Where tax search discloses alteration charge or
Tax search discloses __(alteration charge/new building charge)__ No. __(#)__ pending. This alteration charge in the water department must be fixed and paid prior to closing.
Where tax search discloses (additional) Water c
Tax search discloses (additional) water charges to be fixed. Company does not insure against any (additional) water charges which may be entered subsequent to closing of title herein.
Premises part of larger lot
For Information Only: Premises are part of a larger tax lot.
Future installments of the assessment(s) included in the [General][Town][County] Tax levied and to be levied against the premises.
Tax map description (City of New York)
T-5 All that certain plot, piece or parcel of land, situate, lying in the Borough of __(Boro)__, County of __(County)__, City and State of New York, known and designated on the Tax Map of the City of New York for the Borough of __(Boro)__ as and by Section ___ Block ____ Lot ____ as the same existed on __/__/__.
Note: You may add additional local exceptions here. Please consult with our underwriting personnel in preparing appropriate provisions.