- Title companies verify the legitimacy of a property’s title, check for liens, violations, and open permits, and provide title insurance
- NYC title searches surface open DOB violations and unpermitted work — these must be addressed before or at closing
- There are two types of title insurance: lender’s policy (required by lenders) and owner’s policy (highly recommended)
- Local NYC title companies understand borough-specific regulations, tax records, and DOB filing quirks
- Properties closed without a clear title create problems for new owners that can be costly to unwind
What Do Title Companies Do in NYC?
A title company’s core function is to confirm that the seller has a legal right to transfer ownership and that no outstanding claims exist against the property. In New York City this is a more complex task than in many other markets. Properties may carry decades of recorded and unrecorded liens, unresolved estate issues, judgment liens, open DOB violations, ECB violations, unpaid water or sewer charges, and open permit filings — any of which can encumber a new owner.
Choosing a title company with deep New York City experience matters. Borough-specific nuances in Department of Buildings records, the New York City Register, and local agency databases require familiarity that national title firms without local roots may lack.
What Does a NYC Title Company Check?
| Item | What They Look For | Risk If Found |
|---|---|---|
| Chain of Title | Complete ownership history; gaps or defects in transfers | Competing ownership claims; clouded title |
| Mortgage/Lien Payoffs | Outstanding mortgages, mechanic’s liens, judgment liens | Liens pass to buyer if not cleared at closing |
| DOB Violations | Open DOB and ECB violations; unpermitted work | Buyer inherits fines; lender may refuse to fund |
| Open Permits | Filed but unfinished permit applications; open jobs in DOB NOW | New owner responsible for completion or sign-off |
| Tax Arrears | Unpaid property taxes; water/sewer charges | Tax liens survive transfer; buyer assumes debt |
| Easements & Restrictions | Recorded easements, deed restrictions, air rights transfers | Limitations on how property can be used or developed |
| Survey Issues | Encroachments, boundary disputes, missing survey | Disputes with neighbors; loss of usable area |
What Types of Title Insurance Are There?
| Type | Who It Protects | When Required |
|---|---|---|
| Lender’s Policy | The mortgage lender — covers the loan amount | Required by virtually all lenders as a condition of financing |
| Owner’s Policy | The property buyer — covers the purchase price | Optional but strongly recommended; one-time premium at closing |
How Do You Choose a NYC Title Company?
When evaluating title companies for a New York City transaction, prioritize experience over price. Key factors to assess include: how long the company has operated in the NYC market, whether they have in-house attorneys familiar with ACRIS, DOB NOW, and borough-specific tax records, their responsiveness during the due diligence period, and their track record handling complex situations like estate sales, foreclosure purchases, or properties with multiple open violations. Ask for references from attorneys or brokers who have closed multiple transactions with them.
Frequently Asked Questions
What does a title company do in NYC?
A NYC title company searches public records to verify the property’s ownership history, identify any claims or encumbrances against it (including DOB violations, unpaid taxes, liens, and open permits), and issues title insurance to protect the buyer and/or lender against losses from defects that weren’t discovered during the search. They also typically handle escrow and coordinate the logistical components of closing.
What is title insurance in New York?
Title insurance in New York is a one-time premium paid at closing that protects against financial loss from covered title defects — including claims from prior owners, forged documents in the chain of title, errors in public records, and undisclosed liens. Unlike most insurance, it covers events that occurred before the policy date, not future risks. Lenders require their own policy; buyers are strongly advised to purchase an owner’s policy as well.
Do open violations affect title in NYC?
Yes. Open DOB violations, ECB violations, and unpermitted work all surface during title searches and can cloud title or create problems for buyers and lenders. While they do not technically prevent title transfer in all cases, lenders routinely require that violations be resolved as a condition of funding, and buyers may negotiate price reductions or require the seller to cure violations before closing. Violations not addressed become the new owner’s responsibility after purchase.
How do I choose a title company in NYC?
Look for a company with demonstrated NYC transaction experience, familiarity with DOB and ECB records, strong communication practices, and positive references from real estate attorneys and brokers who regularly close in the five boroughs. In New York, the buyer’s attorney typically recommends a title company — but you are free to shop around and compare services and premium rates.
Open violations or permits flagged during a title search? All Boro Expediter resolves DOB and ECB violations quickly to keep your closing on track. Contact us to get started.
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