Property title: it’s kind of the whole point of buying a home! Advantage Title is seeing a huge influx of business. According to Christopher Nuzzi, Executive Vice President, the company’s East End business is up 50% year to date from 2019. They’ve closed more than $350 million in sales so far this year, and they’re seeing a lot of high-end, estate properties move faster than ever. We chatted with Nuzzi to find out more.
Our readers are sophisticated when it comes to buying and selling property. They know what a title is. Can you enlighten them about some of the things to watch out for when it comes to title?
Now more than ever, we strongly urge buyers and sellers to use a local attorney. They know the land use and zoning code better than anyone else, and that’s critical because of all the issues that can come up, especially if a property goes back many decades and has been transferred a number of times. Since the attorney knows what to look for, they can anticipate and get out in front of issues quickly so there are no surprises; or if there are any surprises, they’re prepared. You as a buyer or seller want to get and stay on top of any zoning related issues, or perhaps issues related to a building permit for things that need to get closed down.
Updated Certificate of Occupancies are common in most transfers. The goal is to get ahead and start filing for the CO with the town as soon as possible. It could also be something specifically related to title. Right now, because of Covid, the county clerk’s office, like all government offices, is operating under limited hours. We may need to get in there since that’s where all this information is located. Now, that will require an additional amount of coordination. These are some of the things we’re focused on.
Basically, we coordinate with buyers, sellers and attorneys on getting things done…doing whatever research is necessary, and starting the process for the updated certificate of occupancy. The fewer problems there are, the fewer unanticipated items we have to tackle, the smoother the transaction will go. Time is always of the essence. We always want to close on time.
When it comes to issues of title, do you find the East End to be more complicated than other areas?
I think it can be. When it comes to title, it could be things like old covenants and restrictions that affect a property… that restrict what you can do or not do with a property. It can be things like easements: whether or not there are easements to water that you’re entitled to if you own a particular piece of property. Buying and selling homes and property out here can be a little different. With regard to land use and zoning use: from the perspective of the land use, there are areas that require updated certificates of occupancy upon the transfer or prior to a transfer, and when you’re dealing with these municipalities, the villages and the towns, you really have to be ahead of it now more than ever.
What are some of the problems that you frequently see with title in the area?
It could be judgments and liens against the property. Title companies right now are limited in terms of access to the public records because of the county’s continued closures or very limited hours of operation. So those are title related issues. It could just be a matter of getting into the county and retrieving all of the documentation needed when you’re forced to schedule a time. They used to be open five days a week from 8:30 to 4:30. Now, at best, you’re going to get scheduled for a couple of hours here or there, and you can’t rely on that five day a week open schedule that used to be available to us. So just in terms of managing time and trying to get things done on the title side, those things that are necessary for a report can be challenging in today’s environment.
Do people try to skimp on this stuff or just kind of ignore it to see if they can get away with things and make the process go faster?
Honestly, some may, some companies may. We don’t. We have a sophisticated clientele here. And their expectation is that we’re going to go back beyond just what is the standard 40-year chain or 40-year search. We’re going to look for those old covenants and restrictions that may affect a property that could go back 100 years. We’re only able to do that with actual access into the county center.
What exactly is your part of the process?
From the title side, our main clients are the attorneys and the buyers. It’s the buyer who buys the title insurance, and it’s typically the attorneys that will recommend the title company. They’ve got relationships with the company. They rely on the information we give them. We work with them through the process to close the transaction. So attorneys are our main clients, but buyers are clients. In my case, I grew up in the area. I’ve worked forever in the area. I know local zoning and some of the local regulations that affect some of these properties. So I’ve expanded out, and I’ll help with some of the zoning and permitting related questions that will come up that can be obstacles to a transaction.
Anything else you want readers to know about related to title?
I think it just it highlights the importance of working with people, and with a company in our case, who know the lay of the land. And I’m always eager or willing to speak with people prior to a transaction or even leading up to the transaction, on the earlier side whenever possible, just to start answering informing them, answering any of their questions, and just to get things moving generally. That’s something that I offer that I think is really helpful to all of our clients.
The issue of timeliness and working with people who understand the nuances, all the time, but especially now—now more than ever—is vitally important.
Do title problems hold up closings very often?
They can. They can be issues like judgments or liens against the properties that need to be resolved. It could be an issue around meandering fences. Out-of-possession issues come up all the time out here where these large properties have fences that are not exactly always on the property line. We deal with that a lot; we have to go out to the property and make determinations as to what’s covered and what’s not…if somebody makes a claim against a neighbor’s property because of a fence that sits inside of that line and alleges use of it over a number of years. We deal with that a lot. And yes, title issues can be obstacles to closing and it’s the job of everybody involved…the attorneys and, of course, the title companies to work through them. That’s where knowing and getting the nuanced side of things and understanding the issues deeply is always important, but now more than ever.