On October 1, 2024, the Title Insurance Rate Service Association, Inc. (“TIRSA”) adopted the Seventh Revision of the Title Insurance Rate Manual. TIRSA, which is licensed by the State of New York’s Superintendent of the Department of Financial Services, is responsible for developing, maintaining, amending, and updating the TIRSA Rate Manual, which is utilized by NYS title insurance and underwriter members to provide Owners and Lenders with title insurance policies. The Rate Manual includes mandatory rates and rating rules, forms, policies, and available endorsements. Any title policies issued after September 30th will need to comply with the terms of the new Rate Manual.

Key Revisions the New Rate Manual

• • The 2006 Owners (fee or purchase) and Lenders (mortgage loan) Policy Forms have been
    discontinued and can no longer be issued in NYS. Title Companies are now only
    authorized to issue the 2021 ALTA Forms for Owners and Lender Policies. Both the 2021
    Forms for Owners and Lenders provide either the same or improved/expanded coverage for
    Owners and Lenders.
  • Twelve (12) previously available TIRSA Endorsements have been replaced with fifteen
    (15) ALTA Endorsements. One replacement is the previous TIRSA Contiguity Endorsement,
    which has been replaced with ALTA 19-06 (Contiguity – Multiple Parcels Endorsement);
    ALTA 19.1-06 (Contiguity – Single Parcel Endorsement); and ALTA 19.2-06 (Contiguity
    Multiple Parcel Transactions Endorsement). This replacement now provides protection
    from losses that may occur for gaps and gores between insured parcel(s) and are
    available for both Owners and Lenders Policies. Additionally, certain TIRSA
    Endorsements have either been removed and/or re-written to better align with the 2021
    ALTA Owners and Lenders Policy Forms.
  • Most importantly, the new Manual takes away title insurance companies’ ability to
    provide affirmative insurance in their issued policies – affirmative insurance is no
    longer permitted in NYS. Previously, affirmative insurance was a free service Title
    Companies often provided for coverage where an available endorsement did not exist.
    Affirmative insurance has been a practice specific to New York, and the removal of
    Companies’ ability to provide for it is move to conform to national standards.
  • In lieu of affirmative insurance, the new Rate Manual adds approximately twenty-four
    (24) new title insurance endorsements not previously available in NYS to provide for
    affirmative coverage. Generally, the purpose of endorsements is to add additional
    coverage and/or protection for items not otherwise covered by the 2021 ALTA Form
    Policies.

Among the key endorsements that have been added in NYS that we are pleased to see
are the:

• TIRSA 3-06 Zoning Endorsement: may be issued whether or not the land is improved
  and only for commercial property when associated with an Owner’s Loan Policy or
  Construction Mortgage Policy. Of note, under the new Rate Manual, vacant land is
  deemed commercial property.
• ALTA 28 Endorsement series (utilized for survey coverage issues), and more
  specifically:
  • ALTA 28.1 Enroachments – Boundaries and Easements Endorsement: provides.
    insurance against loss or damage sustained by reason of encroachments located
    on the land that spills over onto adjoining land
  • ALTA 28.2-06 Easement – Damager or Enforced Removal: provides coverage for damage
    to existing buildings caused by the use or maintenance rights associated with a
    specified easement.
  • ALTA 9 Endorsement series on Covenants, Restrictions, Easements and other
    coverages, which has 4 endorsements available for Lender Policies and 4
    endorsements available for Owners Policies.

Implications for our Clients – Buyers, Developers and Borrowers
With our help, our clients should carefully review the newly available endorsements with their Title Companies (and, as applicable, Lenders (who often have specific requirements for Owners Policies)) to determine which coverages are appropriate to them, keeping in mind that certain endorsements are only available for either Lenders or Owners Policies. Premiums and rates for the available endorsements are based upon filed rates set by TIRSA, and therefore will not vary by Title Company. However, we recommend obtaining estimates of costs for any polices with endorsements well in advance of closing, as some endorsement rates are based upon a percentage of the policy charges. Importantly, endorsements cannot just be added at the closing table as many endorsements require survey work (certain endorsements will require an ALTA Survey), a zoning report, title’s review of zoning regulations/approvals, additional searches, etc. which could delay closings if they are not conducted well in advance.

As always, please reach out to one of our attorneys if you need assistance with navigating your transaction through the title process and new TIRSA Rate Manual endorsements.