Resources
Title Issues and How They Are Cured
One page per defect: how it is found, how it is cured, what it costs, and who pays.
What is a title issue, and what happens when the search finds one?
Quick Answer
Which title issues stop a closing?
- Unsatisfied mortgage of recordA paid-off mortgage with no recorded satisfaction still reads as a live lien in ACRIS. Here is how it is found, how it is cleared, and who pays for it.
- Judgment lien against the sellerA docketed money judgment attaches to New York real property the seller owns in that county. Here is how it surfaces, how it clears, and who pays it.
- OATH (formerly ECB) judgment lienAn unpaid summons from OATH, formerly ECB, becomes a docketed judgment the City enforces against the property. How it is found, cured, and who pays it.
- Mechanic’s lienA contractor’s unpaid bill can attach to the property as a mechanic’s lien. How the search finds it, the four ways it clears, and who pays under the contract.
- Lis pendens (notice of pendency)A notice of pendency warns the world that litigation could affect title. What a lis pendens does to a New York closing, how it comes off, and who pays.
- Forged or fraudulent deed in the chainA forged deed conveys nothing, so every later transfer rests on it. How deed fraud surfaces in a NYC search, how the chain is repaired, and who pays.
- Tax lien and tax lien sale certificateUnpaid property taxes and City charges become a lien, and the City can sell that lien. How a tax lien certificate surfaces before a closing and how it clears.
- Unreleased co-op UCC lienA co-op loan is secured by a UCC filing, not a mortgage. When an old filing was never terminated, the share transfer stalls. How it is found and cleared.
Which title issues move the closing date?
- Open permitAn open DOB permit is work the City still shows as unfinished. It rarely kills a NYC deal outright, but it moves the date and it follows the buyer.
- Certificate of occupancy mismatchWhen the certificate of occupancy does not match how a NYC building is actually used, the lender reads it as a defect. How it is found, cured, and paid for.
- Estate in the chain of titleWhen a deceased owner sits in the chain, title turns on the estate papers. What the search needs, how the gap is cured, and who pays for the delay.
- Missing or defective deed acknowledgmentNew York only records a conveyance that is properly acknowledged. What a defective notary certificate does to the chain, how it is cured, and who pays.
- Boundary and survey encroachmentA fence, a stoop or a wall over the line is a survey exception, not a paperwork error. How encroachments are found, cured, insured around, and paid for.
Which title issues can be escrowed around?
- Name variance and identity discrepancyThe deed in reads one name and the deed out reads another. How a New York title search treats a name variance, how it clears, and what it costs to fix.
- Easement or right of way not shown of recordA driveway, a utility line or a shared alley can burden a property without appearing in ACRIS. How the exception arises, what cures it, and who pays.
- Unpaid water and sewer chargesWater and sewer arrears become a lien on the land in New York City. How the final reading works, how the charge clears, and why it is usually escrowed.
- HPD emergency repair charge lienWhen HPD repairs a condition an owner did not, the cost becomes a lien on the building. How the charge is found, disputed, cleared, and paid at closing.
Who pays to clear a title issue?
Ordinarily the seller, because a standard New York contract obligates the seller to convey marketable title, and most defects arose during the seller’s ownership or a predecessor’s. Where the cure will not fit the closing date, the parties commonly agree to a seller-funded escrow with a defined release condition rather than moving the cost to the buyer.
How early do title issues surface?
Most surface five to fifteen days before the scheduled closing, when the searches come back and the exceptions are read. That is exactly when there is the least time to resolve them, which is the argument for ordering searches early rather than on the lender’s schedule.
Where should you go next?
- The NYC closings glossaryEvery term these pages use, defined.
- The NYC closing help centerEvery closing resource on this site in one place.
- Closing questions, answeredAnswer-first pages for what buyers and sellers ask.
- Title and recording issuesHow the firm handles title clearance on a closing.
- NYC building types and how they closeWhat changes legally between a co-op, a condo and a hybrid.
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Legal Disclaimer: These pages are general information about New York practice. They are not legal advice, they do not account for the terms of any particular contract, building or transaction, and reading them does not create an attorney-client relationship. This is attorney advertising. Prior results do not guarantee similar outcomes.