What Happens During the Title Process When You Buy a Home in New York

Most buyers know they need title insurance. Fewer understand what actually happens between the moment the contract is signed and the moment that policy is issued. The title process in New York is one of the most important — and least understood — phases of a real estate transaction, and what your attorney and the title company do during those weeks can have a direct impact on whether your closing happens on time, whether you take clear ownership, and whether problems surface before or after you become the owner.

Here is a plain-English look at how the title process actually works from start to finish.

What the Title Company Is Actually Searching

When you hear "title search," it sounds like a single thing. In practice, it is a multi-part examination of several distinct public records, each looking for different categories of problems. In New York, a thorough title search typically includes:

The Chain of Title

The title examiner traces ownership of the property backward through the public record — typically 50 to 60 years, sometimes longer — to verify that each transfer of ownership was properly documented, executed, and recorded. A gap in the chain, an improperly executed deed, or a transfer that raises questions must be identified and addressed.

Mortgage Search

Every mortgage ever recorded against the property is identified. More importantly, every mortgage that has been paid off must have a corresponding satisfaction or discharge recorded in the public record. A prior mortgage that was paid off but never formally discharged remains a lien on the property as a matter of public record — even if the underlying debt was satisfied decades ago. These "open mortgages" are among the most common title issues in New York, and resolving them can take weeks.

Judgment Search

Court judgments against prior owners — or against the current seller — become liens on real property in the county where they are docketed. A judgment lien against a prior owner that was never satisfied before they sold the property may have followed the title through subsequent transfers. Your title company searches court records for judgments that could affect the property.

Tax Search

The title company verifies that all real property taxes, water and sewer charges, and other municipal assessments are current and either paid or accounted for at closing. Unpaid taxes are a lien on the property and must be resolved before you can take clear title.

Bankruptcy Search

A transfer of property by someone who was in bankruptcy at the time — or who filed bankruptcy shortly after — can be challenged as a fraudulent transfer. The title search checks bankruptcy filings for prior owners.

Patriot Act / Name Search

Federal law requires title companies to verify that neither the seller nor any party to the transaction appears on the OFAC (Office of Foreign Assets Control) list of prohibited persons and entities.

Municipal Searches

In New York City — including Staten Island — the title process includes a separate category of searches specific to municipal records. These are pulled from city and borough agencies and cover open permits, open violations, and other municipal issues that can affect the property and the closing. Because these are so important and often misunderstood, they are covered in their own section below.

Municipal Searches: A Staten Island Buyer's Primer

Municipal searches are a component of the title process that surprises many buyers — and can significantly affect closing timelines when problems are found. In Staten Island, the title company pulls searches from multiple city agencies, including:

Department of Buildings (DOB). Open building permits and open violations are identified. A permit that was pulled for work but never closed out — a finished basement, an addition, a deck — remains open in the public record indefinitely until it is formally inspected and signed off. Open DOB violations can include anything from a failed inspection to a notice of unsafe conditions.

Environmental Control Board (ECB). ECB violations are issued for a range of code violations and carry fines that, if unpaid, can become liens against the property.

Fire Department (FDNY). Open fire department violations are identified.

Department of Finance. Outstanding tax liens and other finance department encumbrances.

Water and Sewer. Unpaid water and sewer charges are a lien on the property in New York City and must be paid before title can be transferred.

Open violations in the context of a home purchase require resolution before the transaction closes — or the parties must negotiate how they will be handled. This typically means the seller pays outstanding fines, arranges for inspection and sign-off of open permits, or credits the buyer an agreed amount to accept or address violations post-closing. When the violations are significant — a major unpermitted renovation, for instance — resolution can take weeks or require involvement of the Department of Buildings.

This is one area where your attorney's knowledge of local practice matters enormously. The municipal search results come back in documents that are not self-explanatory, and knowing what is a routine item versus what is a genuine problem — and how to address it — requires experience.

The Title Commitment: What It Is and What to Look For

After the title search is completed and reviewed, the title company issues a title commitment — a document committing to insure your title, subject to certain conditions and exceptions. Understanding the structure of the commitment helps you understand what is and is not covered.

A title commitment has two main sections:

Schedule A contains the basic transaction information: the names of the insured parties, the property description, the amount of coverage, and the type of policy being issued.

Schedule B is where the substance lives. It is divided into two parts:

Schedule B-I (Requirements)

Lists things that must be done before the title company will issue the policy. These are conditions to coverage — items that must be resolved at or before closing. Common requirements include:

• Payment of all taxes and assessments
• Satisfaction and discharge of identified mortgage liens
• Execution of specific affidavits or documents
• Resolution of specific title defects found in the search
• Payment of outstanding judgments

Your attorney reviews Schedule B-I carefully and works with the seller's attorney to make sure every requirement is satisfied before closing.

Schedule B-II (Exceptions)

Lists things that will not be covered by the title policy — matters that the title company is excepting from coverage, typically because they are visible in the public record or would be disclosed by a survey. Common exceptions include:

• Rights of tenants in possession
• Survey exceptions (matters a survey would show)
• Specific easements or covenants identified in the search
• Rights of parties claiming under unrecorded instruments

Your attorney reviews the exceptions to determine which are standard and acceptable and which may warrant further inquiry or objection. An exception that significantly limits your use of the property — an easement that runs through a portion of the yard you planned to use, for example — needs to be raised and addressed before you close.

Common Title Issues Found in Staten Island Transactions

After more than 25 years handling real estate closings in Staten Island, the following are among the most frequently encountered title issues:

Unreleased Prior Mortgages

A mortgage was paid off years ago, but the lender never filed a formal satisfaction. The title search shows the mortgage still open. Resolving this requires either locating the original lender (or their successor) and obtaining a recorded satisfaction, or — if the lender is defunct or unresponsive — pursuing a lost instrument proceeding in court to formally clear the lien. This process can take weeks to months.

Open Building Permits

An addition was built, a basement was finished, a deck was added — but the permit was never closed out. Depending on the age of the permit and the nature of the work, resolution may require scheduling a Department of Buildings inspection, paying outstanding fees, or negotiating a credit with the seller while the permit closure is pursued post-closing.

Estate Issues

When a property passed through an estate — either through a will or through intestacy — the deed chain must reflect a proper transfer from the decedent to the current seller. Missing probate documentation, improperly administered estates, or deeds from executors who lacked authority create title problems that can require court proceedings to resolve.

Tax Liens and Water Charges

Unpaid property taxes or water and sewer charges appear as liens. These are generally paid from the seller's proceeds at closing, but confirming exact payoff amounts and ensuring they are properly satisfied requires coordination with the title company.

Judgments Against the Seller

A judgment against the seller in any New York court can become a lien on the property. Judgments must be paid from the seller's proceeds at closing or formally contested. A seller who is unaware of a judgment — or who disputes one — can create significant closing delays.

Boundary and Survey Issues

A survey may reveal that a fence, driveway, or structure crosses a property line — either onto the neighbor's property or onto yours. These encroachments must be addressed, either through negotiation, a boundary line agreement, or a title insurance exception. Learn more about why surveys matter.

How Your Attorney Uses the Title Report

The title report is not just a document your attorney glances at and files. It is a working document that drives much of the activity in the weeks between contract and closing.

When the title report arrives, your attorney:

• Reviews the chain of title for gaps or irregularities
• Identifies all open mortgages and confirms payoff amounts
• Reviews all judgments and verifies whether they affect the property or the seller
• Reviews the municipal search results and flags open permits and violations
• Reviews the exceptions in the commitment to determine which are acceptable and which need to be raised with the seller
• Communicates outstanding issues to the seller's attorney and tracks their resolution
• Follows up with the title company on the final rundown in the days before closing

If something significant comes up — a title defect that cannot be easily resolved, a lien that exceeds the seller's equity, a boundary issue with no clean resolution — your attorney advises you of your options, which may include extending the closing, negotiating a price reduction, or in extreme cases exercising your right to cancel the contract if the seller cannot deliver clear title.

The Final Rundown

In the days immediately before closing, the title company conducts a "rundown" — a final, abbreviated search of the public record to check for any new filings against the property or the seller since the original title search was completed. New judgments, new liens, or new mortgages filed in the intervening weeks would appear here and must be addressed before the closing can proceed.

Your attorney reviews the rundown and confirms that nothing new has surfaced. If something has appeared — which occasionally happens — it must be resolved before you close or the closing must be delayed.

After Closing: Your Title Policy

After the closing funds are disbursed and the deed and mortgage are recorded, the title company prepares and issues the final title insurance policy. This typically arrives by mail several weeks after closing.

Keep your title policy. It is an important document for the life of your ownership. If a title claim arises years or decades later — an unknown heir, a forged document in the chain of title, an old lien that surfaces — your policy is the document that triggers your coverage. Losing it does not mean losing coverage, but locating a replacement takes time and effort.

If you cannot find your policy, contact the title company that issued it. They maintain records and can reissue a copy, typically for a nominal fee. Your attorney can also help locate the issuing title company from the closing records.

Understanding the Full Picture

The title process is just one component of your overall closing costs and timeline. Understanding how long closing takes and what happens at each stage helps you stay informed and prepared throughout the transaction.

Work With an Attorney Who Knows the Title Process

The title search is not something that happens in the background while you wait to sign papers. It is an active, attorney-driven process that requires expertise to review, issues to raise, and problems to resolve. An attorney who knows the local market, understands the common issues in Staten Island title searches, and has working relationships with title companies and municipal agencies is in a fundamentally better position to protect you than one who is unfamiliar with the territory.

With over 25 years of closings in Staten Island, I review every title report personally and handle issues as they arise — so that by the time you sit down at the closing table, the title is clear and you can take ownership with confidence.

Call (718) 442-2010, text (718) 957-8121, or schedule a free consultation online.

Pete Weinman is a real estate attorney licensed in New York and New Jersey, with offices at 260 Christopher Lane, Suite 201, Staten Island, New York 10314. This article is for general informational purposes only and does not constitute legal advice. Please consult an attorney regarding your specific situation.