What Is Title Insurance and Why Do Sellers Care on Long Island?

Title insurance might sound like a buyer-only issue — but for Long Island sellers, it matters more than most people realize. Title problems can delay closing, reduce leverage, or even derail a deal. Understanding how title insurance works helps you stay ahead of surprises.

What Is Title Insurance?

Title insurance protects against legal ownership disputes or claims tied to the property’s history.

Before closing, a title company performs a title search to review:

  • Prior ownership history

  • Outstanding liens

  • Unpaid taxes

  • Judgments

  • Easements

  • Unreleased mortgages

If issues appear, they must be resolved before closing.

Why Sellers Should Pay Attention

While buyers purchase title insurance, sellers are responsible for delivering clear title.

That means:

  • No unresolved liens

  • No unpaid property taxes

  • No undisclosed ownership claims

  • No unreleased prior mortgages

If a problem surfaces, the seller must fix it before ownership can transfer.

Common Title Issues on Long Island

Because Long Island homes often have long ownership histories, title searches sometimes uncover:

  • Old mortgages that were never properly discharged

  • Contractor liens

  • Boundary discrepancies

  • Easements affecting property use

  • Estate-related ownership complications

Even small clerical issues can delay closing.

How Title Issues Affect Closing

If a title issue is discovered:

  • Closing may be postponed

  • Attorneys may negotiate solutions

  • Funds may be held in escrow

  • Documentation may need to be filed

Most problems are fixable — but they require time.

Can Sellers Prevent Title Surprises?

Yes, by:

  • Ordering a pre-listing title review

  • Confirming prior mortgage satisfactions

  • Addressing open permits early

  • Ensuring estate documentation is complete

Preparation reduces risk during the contract phase.

Why This Matters in New York

New York closings are attorney-driven and document-heavy.

Because of this:

  • Title review is thorough

  • Municipal compliance is detailed

  • Ownership history is carefully examined

Clear title is essential for a smooth transfer.

FAQs

Do sellers pay for title insurance on Long Island?

Buyers typically purchase title insurance, but sellers must provide clear title. If you want help reviewing potential risks, you can explore that here: 👉 https://www.theericbermanteam.com/contact-us

What happens if a lien is discovered before closing?

The seller must resolve it before ownership transfers. Early review helps prevent delays — you can learn more here: 👉 https://www.theericbermanteam.com/contact-us

Can title problems delay closing?

Yes. Even minor documentation issues can push timelines. Preparation matters — you can get guidance here: 👉 https://www.theericbermanteam.com/contact-us

Are old mortgages a common issue?

Yes. Occasionally prior mortgages were never properly discharged. You can explore how to verify that here: 👉 https://www.theericbermanteam.com/contact-us

Should sellers check title before listing?

In some cases, yes — especially for inherited or long-held properties. You can start that conversation here: 👉 https://www.theericbermanteam.com/contact-us

Eric Berman, REALTOR®
Compass Greater NY
917-225-8596
eric@ericbermanteam.com
www.theericbermanteam.com

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