Hallmark Abstract Service provides title insurance for residential and commercial real estate transactions in New York State and nationwide, underwriting through Chicago Title.
HAS opened its doors in 2008 with two primary goals in mind!
Number one was to create a title insurance company that would provide our clients with a superior finished product while affording them a seamless and stress-free process.
Number two was to make the experience of working with Hallmark Abstract Service as easy and as pleasurable as obtaining title insurance for a real estate transaction could possibly be!
From the sheer number of satisfied clients who keep coming back to Hallmark Abstract Service for their title insurance needs, I believe that we have accomplished our goals in the past, and we will continue striving to improve on them in the future!
My Background
In 1980 I earned an undergraduate degree in economics followed in 1984 by an MBA in finance with a concentration in the tax-exempt market. With this focus on the municipal market I became a municipal bond analyst at Shearson/Lehman Brothers tasked with following both general obligation issuers on the city and state level as well as housing bonds secured by mortgage pools.
This experience at Shearson/Lehman Brothers followed by stints at PaineWebber and Citigroup provided a broad framework of understanding concerning the mechanics of mortgage debt in terms of prepayment experience, mortgage quality and the expected duration of a portfolio.
Leaving Wall Street I started Exeter Commercial which funded commercial mortgage loans. Title insurance was a critical part of the underwriting and closing process.
At the peak of the financial crisis, I recognized both an opportunity and need as many title firms, for a variety of reasons, closed their doors. Out of this, Hallmark Abstract Service was born.
When you’re buying a home in New York, after the contract is fully executed a key decision that will need to be made concerns the title insurance provider to use.
The choices are plenty, but the buyer choosing the company is not how the process typically works.
Often your attorney will ask you to write a check for the title insurance policy at the closing table, and that may be the first time you will hear the name of the company providing what is critical protection for what may be the largest financial commitment of your life!
And while your attorney is your trusted advisor and selected a title insurance firm he has likely used many times in the past and trusts, you as the homebuyer should do your own due diligence, much like you would if choosing a big screen TV or some other type of insurance.
New York Title Insurance Companies Are Not All The Same, And It’s Your RIGHT To Choose The Company You’d Like To Use!
Taking a look at the infographic below will give you an idea about some of the significant differences that can exist between title insurance providers including cost (yes cost), shortcuts that should never be taken, and the power of testimonials from the clients who appreciate the level of service and protection that they received.
But there are more! In fact, we developed a list of ‘10 Significant Ways That Hallmark Abstract Service Differentiates Itself From Many New York Title Insurance Providers!‘
Read the article either on the Hallmark Abstract Service website or on LinkedIn…
How should a boundary line dispute be resolved so that the homebuyer is 100% protected from future issues?
There is a right way for the title company to provide 100% protection for the homebuyer (boundary line agreement) and a wrong way that does not (affidavit).
If not done that way, the issue can return and in addition the land in question will not be covered by the title insurance policy.
The attorney for the buyer, charged with protecting the buyer’s interests, should also be 100% on board with the boundary line agreement resolution.
What is a boundary line dispute?
A boundary dispute between neighbors occurs when there is disagreement or uncertainty about the precise location of the property line that separates two adjoining parcels of land. These disputes can arise for several reasons, including:
Unclear Property Lines: Property deeds, surveys, or maps may be outdated, inaccurate, or unclear.
Encroachments: One neighbor may build a fence, structure, or other improvement that extends over the perceived boundary onto the other’s property.
Adverse Possession: One neighbor may claim ownership of a portion of the other’s land by having used it openly and continuously for a long period of time (often 10 years in many jurisdictions).
Natural Changes: Changes in landscape features (e.g., rivers, trees, or erosion) that may alter perceptions of where the boundary lies.
As a homebuyer, if the neighbor is in some way encroaching on your property (typically by more than 12″), it’s an issue that needs to be resolved before closing.
As a title insurance company, if the issue is not adequately resolved through a boundary line agreement, the disputed land will be excepted, or not covered, in the policy being issued.
The reason for this is that if the boundary dispute is ‘resolved’ through an affidavit, the issue can arise again in the future were the current neighbor to move.
Boundary Line Agreement vs Affidavit
There are two ways to resolve a boundary dispute, with both requiring the signatures of the neighbor.
With one solution there is absolute finality, but with the other the solution can be temporary.
Affidavit– The Temporary and Unsatisfactory ‘Solution’
One way is through an affidavit, nothing more than a bandaid signed by the current neighbor, where the disputed property will not be covered under the title insurance policy. The reason is that were the neighbor who signed the affidavit to sell the property, the affidavit would be null and void and the dispute would be back on the table.
Boundary Line Agreement – Permanent Solution To The Problem!
The other method, a notarized and recorded boundary line agreement, completely protects the new homebuyer, and any subsequent buyers of that property, forever!
There will be a cost to prepare and record the agreement but the property in question will be covered under the title insurance policy.
Conclusion
Resolving a boundary dispute through a boundary line agreement completely protects the new homeowner forever and the disputed piece of the property is covered with the title insurance policy.
The other method, an affidavit signed by the neighbor, is a bandaid that exists only while the current neighbor owns their house and that disputed piece of the property will not be covered under the title insurance policy.
As the title company, we are charged with one job to completely protect the homebuyer in what may be the largest financial commitment of their lives! This is why we insist on a boundary line agreement!
Questions? Let us know at info@hallmarkabstractllc.com or at (516) 741-4723.
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You found the New York home of your dreams!
Did you know that it’s your RIGHT to choose the title insurance provider you would like to work with?
And, did you know that title insurance companies are NOT all the same, including the cost?
When a real estate transaction is reaching its conclusion, the homebuyer is going to be asked to write checks made out to the title insurance company providing the policy for their new property.
At times, because the numbers may be quite large, there may actually be a modicum of anger at the title company that could be perceived as making too much money on the deal.
The reality is actually much different, however, as the title company is collecting a variety of funds that are actually going to be sent to other entities to pay for a variety of taxes and fees.
The truth is, that the actual amount that the title company is receiving in a one-time premium (which varies by purchase price and mortgage amount) can be under 10% of the total.
Using the New York City purchase example in the chart, the checks written at the closing will total $111,533.
The title insurance premium portion, or the amount of money that will pay for the policies both for the owner and lender, is $9,923.
This amounts to 9% of the total being collected with 91% of total going for the benefit of state and local government entities.
The bottom line is that when you get a title bill from the title company being used, speak to your attorney to insure that you completely understand the bill, its components, and who will be receiving what when you write the checks at the closing table.
Title insurance, critically important to protect the new buyers, is much better understood when looked at in chart form, the way it’s presented above!
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If You’re Buying Commercial Or Residential Property In New York State, You MUST Protect It…That’s Where Title Insurance And Due Diligence Comes In!
Do Some Research Concerning The Title Insurance Provider That Will Be Used For Your Real Estate Purchase In New York!
Watch ‘If You’re A Homebuyer In New York You MUST Protect It…That’s Where Title Insurance And Due Diligence Comes In!’ here https://youtu.be/jZuTNUhwHuc.
And remember that it’s your RIGHT to choose the title company you would like to use!
Hallmark Abstract Service…You Buy Real Estate, We Protect It!
Are you buying a home in New York and obsessed with the title insurance you will be buying?
Good for you, recognizing just how critical title insurance is.
The 12 Distinct Ways That Hallmark Abstract Service Differentiates Itself From A Great Many Of Its Competitors!
For more information about the distinct areas of title insurance you should be aware of, watch any or all of the thirteen 1-2-minute TikTok videos below. Each short episode will have Hallmark Abstract Service CEO Mike Haltman describing the issue, and how all title insurance companies in New York ARE NOT the same!
And now the 12 differentiating factors that in total, make Hallmark Abstract Service a go-to title insurance provider for so many attorneys in New York.
And remember, you have the RIGHT to choose the title insurance company that you would like to work with!
10 Significant Ways That Hallmark Abstract Service Differentiates Itself From Many New York Title Insurance Providers!
The ancillary and ‘junk’ fees on Hallmark Abstract title bills are often $500-$1,500 less than those of other title insurance companies! This is a significant amount of money that is better in the pockets of the buyer, than in the pockets of a title insurance company!
At a closing the New York buyer will receive a title insurance policy. The overriding question, however, is what title company work went into creating that policy? Since its inception in 2008, Hallmark Abstract Service has had no valid title claims.
Attorneys for the buyer, the seller, the mortgage company and any other player in the transaction will have ONE point of contact at our firm.
If a business decision ever has to be made, at Hallmark Abstract you will be dealing with the owners of the company.
Affiliated Business Relationships or ABS. Hallmark Abstract does not have any of these that have the potential to create a serious conflict of interest. Imagine if a critical member of your real estate team such as attorney had a vested interest in seeing a deal close due to title insurance ties.
Hallmark Abstract does not take shortcuts! If an ‘easy’ solution exists that will get a deal to closing, but that solution does not protect our client to the greatest extent possible, we will not go that route! An example is our insistence on a boundary-line-agreement as it survives any sale of the house next door. The easy route is to have the existing neighbor sign an affidavit, but that will no longer be valid were that neighbor to more.
We recommend a 2nd opinion! Regardless of who is providing title, we always recommend getting a title bill from a second company to make sure the non-premium charges are fair (see #1). If a significant difference in cost exists, we advise going to the original title company and request a reduction.
Technology! Hallmark Abstract provides a free and on-demand title insurance bill platform. 24/7, for any purchase price and mortgage amount, and in any New York State city or town, buyers, attorneys, real estate agents and mortgage loan originators can get a title insurance bill and know their costs instantaneously! Visit here and take it for a test-drive, https://hallmarkabstractllc.titlecapture.com/login.
Testimonials! As a result of the quality of the work Hallmark Abstract provides its clients and the level of the experience when dealing with us, the firm has been blessed by a great many fantastic testimonials. Read some of them at the Hallmark Abstract Service Google Business Page simply by Googling our name, or by clicking the link above.
The financial strength of the title policy underwriter is critical. We learned that lesson in 2008 when some title insurance underwriters went out of business. Hallmark Abstract’s primary underwriter is the Fidelity National Title Group, the largest and best capitalized title insurance underwriter of them all!
Questions? Let us know anytime at info@hallmarkabstractllc.com or give us a call at (516) 741-4723 or (646) 741-6101
Excellent tutorial from Adler & Stachenfeld (https://adstach.com/) Partner YuhTyng Patka (https://adstach.com/attorneys/yuhtyngpatka) about the additional draft rules issued by the NYC Department of Buildings (DOB) concerning how Local Law 97 will be implemented and enforced.
It is provided below in its entirety, with contact information for YuhTyng Patka at the end.
Last week the NYC Department of Buildings (“DOB”) released additional draft rules further providing clarification as to how Local Law (“LL97”) will be implemented and enforced. As a reminder, LL97 places a statutory limit on greenhouse gas emissions of NYC buildings 25,000 gross square feet or larger beginning January 1, 2024. The first “building emissions report” confirming either compliance or non-compliance for the 2024 calendar year must be submitted to DOB by May 1, 2025 for most NYC building owners covered under LL97.
Many NYC building owners had hoped that the January 1, 2024 compliance deadline would eventually be delayed altogether. That has unfortunately not been the case. For many, the January 1, 2024 compliance deadline is still applicable and looms in the near future.
The latest draft rules signal that while the City of New York recognizes the challenges faced by owners in planning for LL97 compliance resulting from the pandemic and rising interest rates, the City is not backing down from its efforts to curb the real estate industry’s impact on carbon emissions.
To that end, the new rules formalize an extension of the building emissions report deadline (but not the compliance date) for income-restricted multi-family owners from May 1, 2025 to May 1, 2027 at earliest. (As a reminder, income-restricted multi-family owners and houses of worship can comply with LL97 through prescriptive pathways outlined in the law and have until December 31, 2024 to do so). The City also encourages and incentivizes owners to electrify their buildings’ heating, cooling, and hot water systems by offering a “beneficial electrification ”credit that can be “banked” and used to minimize future penalties if qualifying electric systems are installed before 2030, with a greater credit granted if such systems are installed prior to 2027.
The new rules also provide a framework for how NYC building owners can mitigate civil penalties associated with noncompliance with LL97. Penalties will be calculated as the difference between the building emissions limit established for a particular calendar year and the actual emissions reported for such calendar year, multiplied by $268.
If an owner seeks to mitigate a penalty, they must demonstrate DOB’s criteria for mitigating factors with the filed building emissions report. One mitigating factor DOB will consider is an “unexpected or unforeseeable event” such as a hurricane, flood, or fire. Successful demonstration of an unexpected or unforeseeable event may result in a $0 penalty.
The other mitigating factor considered by DOB is a showing that “good faith efforts” have been made by the building owner to comply. The new rules outline what DOB constitutes as “good faith efforts”.
The owner must demonstrate all of the following:
Filed a LL97 building emissions report for the previous calendar year
Uploaded benchmarking information (LL84) for the previous calendar year
Completed lighting system upgrades and sub-metering requirements (LL88)
Additionally, the owner must demonstrate at least one of the following:
Submit a decarbonization plan by May 1, 2025 (discussed further below)
Provide evidence of DOB approval for the work necessary to comply
Provide evidence that the building is undergoing electrification work
Submitted a building emissions report during the 2024-2029 compliance period showing the building was under the limit for such calendar year
An owner of a critical facility (e.g. a hospital, dialysis clinic, vaccine manufacturing facility, or other operation critical to human life or safety) shows how payment of the penalty would negative impact the facility’s operations
The owner has applied for or been granted an adjustment to the building’s emissions limit
If an owner chooses to mitigate penalties by submission of a decarbonization plan by May 1, 2025, such plan must include:
An energy audit
An inventory of all heating, cooling, hot water, and electric equipment
Description of any work completed since January1, 2013 that resulted in at least 10% emissions reduction as compared to the year prior to work completion
A list of proposed alterations and changes to operations and maintenance that will result in net zero carbon emissions by2050 (the removal of a tenant is not a permitted strategy). The list must include timeline, capital source(s), and estimated emission reductions resulting from the changes.
The decarbonization plan route requires that the work contemplated in the plan be completed within 2 years of submission. So, if owners are seeking to mitigate penalties for reporting year 2024 which report must be submitted by May 1, 2025, then the decarbonization plan must be implemented and completed by May 1, 2027 and provide compliance for 2024’s emission limit. Additionally, such decarbonization plan must also show compliance with a building’s 2030 emissions limit by May 1, 2028 and an owner cannot purchase any renewable energy credits (RECs) to comply in 2024-2029.
Moral of the story: As we have continuously been advising our audience in the past 4 years, owners need to act swiftly with regards to their LL97 compliance efforts. The “good faith efforts” outlined by DOB in its latest draft rules confirm such need to move quickly, as most of the criteria require the owner to have begun compliance efforts well in advance of the January 1, 2024 compliance deadline.
If you have any questions regarding any of these new laws and proposals, please contact:
A foursome at Sebonack Country Club in Southampton will be auctioned at the 13th Annual Heroes To Heroes Foundation Golf & Tennis Classic on July 17th (early bidding is available).
This PresentsA Huge Business Development Tool And Opportunity For A Business Or Law Firm…
For those unfamiliar, ‘Sebonack Country Club is one of the most exclusive in the world and so, the cost of playing a round is high. Even the initiation fee is very high at $500,000. It’s a private club so if you have the money, you can apply. However, membership is limited and has a long waiting period.’
The course was designed by Jack Nicklaus and Tom Doak, and is currently #38 on the list of Golf Digest’s 100 Greatest Courses!
The minimum bid for this Sebonack foursome that includes lunch and cart (not caddy), and that is fully tax-deductible, is $7,500 ($5,475 effective cost in the combined 27% NYS and Federal combined tax bracket)(some date restrictions exist).
Not an insignificant amount of money, but the reality is that for one of your clients or prospects who is also a golfer, the idea of ever playing Sebonack is more of a bucket list item than one that has the potential of ever becoming a reality!
And, what’s better than spending 4 or 5 hours on a golf course with a (potential) business partner?
Have questions? Like to put in a bid prior to the event on July 17th?
The Heroes To Heroes Foundation (https://heroestoheroes.org/) is a nondenominational combat veteran 501(c)(3) with a mission of saving vets who return home suffering moral injury, and live at serious risk of death by suicide.
The 18-month program utilizes peer support, spiritual awakening, and reconnection to faith, helping these American heroes to finally open up and begin the process of healing. The end result is that they are ultimately able to live their best lives!
Between program years 1 and 2, Teams go on 10-day journeys to Israel where they visit some of the worlds holiest sites including the Wailing Wall, Stations of the Cross, Yad Vashem and much more.
Evenings are spent as a group in discussion sessions.
Hallmark Abstract Service CEO Michael Haltman has the honor and privilege of serving as the Heroes To Heroes Foundation Board Chair.
This completely free-to-use technology allows the user to input the purchase parameters for a residential deal, in any New York State town or city, and for any purchase price and mortgage amount.
The output will be the title bill for the transaction including title insurance premiums, recording fees and any applicable mortgage or mansion tax.
The example shown below outlines the costs in a New York City residential purchase for $2,000,000 with a mortgage of $1,500,000.
Don’t be penny-wise and dollar foolish when it comes to protecting what may be the largest financial commitment of your life!
The situation: ‘Fannie Mae and Freddie Mac are now accepting written Attorney Opinion Letters (AOLs) in lieu of a title insurance policy under limited circumstances as a result of Equitable Housing Finance Plans announced earlier by the FHFA earlier this year.’
Comparing title insurance and AOLs, one protects property buyers while the other kinda/sorta protects them in some instances!
Risks to Homebuyers
– Should a title issue arise on a property covered by an attorney opinion only, the buyer would need to prove negligence on the part of the attorney to pursue the claim with them. – If not proven, a claimant would likely need to pay the legal costs involved to litigate the title matter, posing a financial burden and a significant risk.’
A report from the American Land Title Association (ALTA) spells out the issues and risks facing homebuyers who opt for the Attorney Opinion Letter or AOL.
Overview
Fannie Mae and Freddie Mac are now accepting written AOLs in lieu of a title insurance policy under limited circumstance as a result of Equitable Housing Finance Plans announced earlier by the FHFA earlier this year.
Since before the announcement, ALTA has engaged with the FHFA and government sponsored entities (GSEs) to help them understand the differences between title insurance and alternative products in the coverage and protection they provide.
ALTA continues to work with the GSEs to ensure that access to sustainable homeownership opportunities is available for all Americans in a way that does not increase risk or undermine the property rights of homebuyers, particularly low- and moderate-income and first-time homebuyers.
ALTA believes it is misguided for lenders to offer title insurance alternatives that provide less coverage but introduce more risk to lenders and consumers.
Who’s at Risk
Alternative Products Increase Lender Risk
Historically, lenders have preferred the protection of a title insurance policy because it provides the best mix of strong protections and low cost. Lenders considering the use of AOLs or other alternatives must understand the risks they are taking on by not getting title insurance since they will be on the hook given Fannie Mae and Freddie Mac’s life of loan representations and warranties related to title.
One sizable risk is related to items not discoverable in a public records search like federal tax liens, mis-indexed items or HOA liens. An attorney opinion letter does not cover items not shown in a public records search.
Another important example of the difference in coverage is fraud or forgery of title documents. Title insurance provides coverage when a seller’s deed was forged or there was fraud with the previous owner’s will. An attorney opinion letter does not.
Unlike an AOL, title insurance provides lenders with a defense—including all attorneys’ fees and costs—in a lien priority dispute or other matter covered by the policy.
Lastly, unlike title insurance, AOLs might push more consumers into foreclosure since that is a condition to making valid claim under the service provider policy wrapper.
Risks to Homebuyers
Should a title issue arise on a property covered by an attorney opinion only, the buyer would need to prove negligence on the part of the attorney to pursue the claim with them.
If not proven, a claimant would likely need to pay the legal costs involved to litigate the title matter, posing a financial burden and a significant risk.
Information courtesy of ALTA here: https://www.alta.org/advocacy/risks-of-alternatives-to-title-insurance.cfm
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For more information about title insurance, read the article ‘Are New York Title Insurance Providers All The Same?’ here, https://lnkd.in/gps-dGc8.
Hallmark Abstract Service…You Buy, We Protect!
Have questions? Reach out to Hallmark Abstract Service at (646) 741-6101 or send us an email at info@hallmarkabstractllc.com.
