NY State Senate Bill 2025-S1082

Senate Bill S1082

2025-2026 Legislative Session

Establishes the New York title guaranty program and the New York title guaranty corporation; repealer

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Current Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2025	referred to corporations, authorities and commissions

co-Sponsors

2025-S1082 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Add Art 10-D Title 4 §§3974 & 3975, Pub Auth L; add §92-j, St Fin L; rpld Art 64, Ins L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S7744
2021-2022: S2761
2023-2024: S4539

2025-S1082 (ACTIVE) - Summary

Establishes the New York title guaranty program to provide title insurance for real property within the state; establishes the New York title guaranty corporation to implement the New York title guaranty program.

2025-S1082 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1082

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the public authorities law and the state finance law, in
relation to establishing the New York title guaranty program; to estab-
lish the New York title guaranty commission; and to repeal certain
provisions of the insurance law relating thereto

 
PURPOSE:

Establishes the New York title guaranty program and the New York title
guaranty corporation; repealer.

 
SUMMARY OF PROVISIONS:

Section 1: The legislature finds and declares that a state title guaran-
ty program promotes land title stability and a low-cost mechanism to
provide for guarantees of real property titles in New York State

§ 2. Amends Article 10-D of the public authorities law by adding a new

title 4, Section 3974 and Section 3975, which creates the New York title
guaranty program offering guarantees of real property titles in the
state. Lists the New York title guaranty corporation as the authorized
entity to administer the program, establishes duties and responsibil-
ities.

§ 3. Amends the state finance law by adding a new section 92-j to 17,
establishing the "title guaranty fund" and joint custody for the New
York title guaranty corporation and the state comptroller.

 
JUSTIFICATION:

Title insurance protects holders from a financial loss related to
defects in a title of property. For example, if a past owner of a prop-
erty had a lien on their property that is not known about by the current
property holder, the current titleholder would be protected by title
insurance. There are two policies in the mix at a closing:  the lender's
policy, which is required, and an optional owner's policy.

New York has one of the highest title insurance premiums in the country.
While other states offer a flat rate, title insurance in New York can be
fraught with high costs. New York lacks a modem and centralized system
to record title insurance to help protect homeowners and other property
owners. In response, this legislation establishes the New York Title
Guaranty Program and Corporation, which is charged with overseeing and
administering fair and equitable title insurance regulations. The Corpo-
ration will create a fixed rate of charge for title insurance and
include a premium for state administrative costs. Also, attorneys and
abstractors who use title insurance will be held accountable, and conse-
quently, must pay a fee and be registered with the state.

The state will establish a statewide electronic database of all real
property in the state with all title information included. All attorneys
and abstractors will have access to this public database.

 
LEGISLATIVE HISTORY:

2023-24: S4539 (Ramos) Referred to Corporations, Authorities and Commis-
sions/ A4500 (Epstein) Referred to Corporations, Authorities and Commis-
sions

2021-22: 52761 (Ramos) Referred to Corporations, Authorities and Commis-
sions/ A8574 (Epstein) Referred to Corporations, Authorities and Commis-
sions

2019-20: S7744 (Ramos) Referred to Corporations, Authorities and Commis-
sions

 
FISCAL IMPACT:

TBD

 
EFFECTIVE DATE:
This act shall take effect January 1, 2027. Effective immediately, the
addition, amendment and/or repeal of any rule or regulation necessary
for the implementation of this act on its effective date are authorized
to be made and completed on or before such effective date.

2025-S1082 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1082
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sens.  RAMOS, MAY -- read twice and ordered printed, and
   when printed to be committed to the Committee on Corporations, Author-
   ities and Commissions
 
 AN ACT to amend the public authorities law and the state finance law, in
   relation to establishing the  New  York  title  guaranty  program;  to
   establish  the  New  York  title  guaranty  commission;  and to repeal
   certain provisions of the insurance law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  findings. The legislature finds and declares
 that a state title guaranty program promotes land title stability and  a
 low-cost  mechanism to provide for guaranties of real property titles in
 New York state. The title guaranty corporation established by  this  act
 will  facilitate developers', homebuyers', and mortgage lenders' partic-
 ipation and add to the integrity of the land-title  transfer  system  in
 the state.
   § 2. Article 10-D of the public authorities law is amended by adding a
 new title 4 to read as follows:
                                   TITLE 4
                      NEW YORK TITLE GUARANTY PROGRAM
 SECTION 3974. NEW YORK TITLE GUARANTY PROGRAM.
         3975. NEW YORK TITLE GUARANTY CORPORATION.
   §  3974.  NEW YORK TITLE GUARANTY PROGRAM. (A) THERE IS HEREBY CREATED
 THE NEW YORK TITLE GUARANTY PROGRAM TO INITIATE AND  OPERATE  A  PROGRAM
 WHICH  SHALL OFFER GUARANTIES OF REAL PROPERTY TITLES IN THIS STATE. THE
 PROGRAM SHALL BE AUTHORIZED AND ADMINISTERED BY A NEW STATE  CORPORATION
 ENTITLED THE NEW YORK TITLE GUARANTY CORPORATION.  THE CORPORATION SHALL
 DETERMINE  THE TERMS, CONDITIONS, AND FORM OF THE GUARANTY CONTRACT. THE
 CORPORATION SHALL FIX A CHARGE FOR THE GUARANTY IN AN AMOUNT  SUFFICIENT
 TO  PERMIT  THE PROGRAM TO OPERATE ON A SELF-SUSTAINING BASIS, INCLUDING
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03196-01-5
 S. 1082                             2
 
 PAYMENT OF ADMINISTRATIVE COSTS  AND  THE  MAINTENANCE  OF  AN  ADEQUATE
 RESERVE AGAINST CLAIMS UNDER THE NEW YORK TITLE GUARANTY PROGRAM.
   (B)  A  TITLE GUARANTY OR GAP COVERAGE ISSUED UNDER THIS PROGRAM IS AN
 OBLIGATION OF THE CORPORATION ONLY AND CLAIMS  ARE  PAYABLE  SOLELY  AND
 ONLY  OUT OF THE MONEYS, ASSETS, AND REVENUES OF THE TITLE GUARANTY FUND
 ESTABLISHED AND HELD BY THE CORPORATION AND ARE NOT AN  INDEBTEDNESS  OR
 LIABILITY OF THE STATE. THE STATE SHALL NOT BE LIABLE ON ANY GUARANTY OR
 GAP COVERAGE.
   (C)  THE  CORPORATION  SHALL  CONSULT WITH THE DEPARTMENT OF FINANCIAL
 SERVICES IN DEVELOPING A GUARANTY  CONTRACT  AND  DEVELOPING  ANY  OTHER
 FEATURE  OF  THE PROGRAM WITH WHICH THE DEPARTMENT OF FINANCIAL SERVICES
 MAY HAVE SPECIAL EXPERTISE.
   (D) EACH PARTICIPATING ATTORNEY AND ABSTRACTOR MAY BE REQUIRED TO  PAY
 AN  ANNUAL  PARTICIPATION  FEE  TO BE ELIGIBLE TO PARTICIPATE IN THE NEW
 YORK TITLE GUARANTY PROGRAM. THE FEE, IF ANY, SHALL BE SET BY THE CORPO-
 RATION.
   (E) THE PARTICIPATION OF ABSTRACTORS AND ATTORNEYS SHALL BE IN ACCORD-
 ANCE WITH RULES ESTABLISHED  BY  THE  CORPORATION  AND  ADOPTED  BY  THE
 PROGRAM  PURSUANT  TO  THE STATE ADMINISTRATIVE PROCEDURE ACT, INCLUDING
 RULES FOR  THE  PAYMENT  OF  REASONABLE  FEES  AND  COSTS  OF  NECESSARY
 SERVICES.
   (1)  (A) EACH PARTICIPANT SHALL AT ALL TIMES MAINTAIN LIABILITY COVER-
 AGE IN AMOUNTS APPROVED BY THE CORPORATION. UPON PAYMENT OF A  CLAIM  BY
 THE  CORPORATION,  THE  CORPORATION SHALL BE SUBROGATED TO THE RIGHTS OF
 THE CLAIMANT AGAINST ALL PERSONS RELATING TO THE CLAIM.
   (B) ADDITIONALLY, THE STATE, THROUGH THE CORPORATION, SHALL  ESTABLISH
 AND MAINTAIN A STATEWIDE ELECTRONIC DATABASE OF REAL PROPERTY THROUGHOUT
 THE  STATE.  ALL  INSTRUMENTS AFFECTING REAL PROPERTY IN THE STATE WHICH
 HAVE HERETOFORE BEEN RECORDED IN THE OFFICE OF A COUNTY CLERK  OR  OTHER
 MUNICIPAL  OFFICE SHALL BE RECORDED IN THE STATEWIDE ELECTRONIC DATABASE
 OF REAL PROPERTY.  THE CORPORATION MAY UNDERTAKE ADDITIONAL  METHODS  TO
 OBTAIN  REAL  PROPERTY  TITLE  INFORMATION  FOR PURPOSES OF CREATING AND
 MAINTAINING A COMPREHENSIVE STATEWIDE ELECTRONIC DATABASE OF REAL  PROP-
 ERTY.    THE  STATEWIDE  ELECTRONIC  DATABASE  OF REAL PROPERTY SHALL BE
 ACCESSIBLE TO PARTICIPATING ABSTRACTORS AND ATTORNEYS UNDER TERMS DETER-
 MINED BY THE CORPORATION, AND THE CORPORATION MAY PROVIDE ACCESS TO  ALL
 OR PORTIONS OF THE DATABASE TO THE PUBLIC.
   (2)  THE  CORPORATION  MAY  WAIVE THE REQUIREMENTS OF THIS SUBDIVISION
 PURSUANT TO AN APPLICATION OF AN ATTORNEY OR ABSTRACTOR WHICH SHOWS THAT
 THE REQUIREMENTS IMPOSE A HARDSHIP TO THE  ATTORNEY  OR  ABSTRACTOR  AND
 THAT  THE  WAIVER  CLEARLY  IS  IN  THE PUBLIC INTEREST OR IS ABSOLUTELY
 NECESSARY TO ENSURE AVAILABILITY  OF  TITLE  GUARANTIES  THROUGHOUT  THE
 STATE.
   (F)  PRIOR  TO THE ISSUANCE OF A TITLE GUARANTY, THE CORPORATION SHALL
 REQUIRE EVIDENCE THAT AN ABSTRACT OF TITLE TO THE REAL PROPERTY IN QUES-
 TION HAS BEEN  BROUGHT  UP-TO-DATE  AND  CERTIFIED  BY  A  PARTICIPATING
 ABSTRACTOR  IN  A  FORM  APPROVED BY THE CORPORATION AND A TITLE OPINION
 ISSUED BY A PARTICIPATING ATTORNEY IN THE FORM APPROVED  BY  THE  CORPO-
 RATION  STATING  THE ATTORNEY'S OPINION AS TO THE TITLE. THE CORPORATION
 SHALL REQUIRE EVIDENCE OF THE ABSTRACT BEING BROUGHT UP-TO-DATE AND  THE
 ABSTRACTOR  SHALL  RETAIN  EVIDENCE OF THE ABSTRACT AS DETERMINED BY THE
 CORPORATION.  THE INFORMATION OBTAINED MAY BE INCLUDED IN THE  STATEWIDE
 ELECTRONIC DATABASE.
   (G)  THE  ATTORNEY  RENDERING  A  TITLE OPINION SHALL BE AUTHORIZED TO
 ISSUE A TITLE GUARANTY CERTIFICATE SUBJECT TO THE RULES  OF  THE  CORPO-
 RATION.
 S. 1082                             3
 
   (H)  THE  CORPORATION  SHALL ADOPT RULES AND REGULATIONS NECESSARY FOR
 THE IMPLEMENTATION OF THE NEW YORK TITLE GUARANTY PROGRAM AS ESTABLISHED
 BY THIS ARTICLE.
   §  3975.  NEW  YORK  TITLE  GUARANTY CORPORATION. 1.   THERE IS HEREBY
 ESTABLISHED THE NEW YORK TITLE GUARANTY CORPORATION FOR THE  IMPLEMENTA-
 TION OF THE NEW YORK TITLE GUARANTY PROGRAM.  THE CORPORATION SHALL BE A
 BODY  CORPORATE  AND  POLITIC CONSTITUTING A PUBLIC BENEFIT CORPORATION.
 THE PRESIDENT OF THE CORPORATION SHALL BE NOMINATED BY THE GOVERNOR  AND
 CONFIRMED  BY THE SENATE. THE BOARD OF DIRECTORS SHALL CONSIST OF TWELVE
 MEMBERS AS FOLLOWS: THE PRESIDENT OF THE CORPORATION, OR THE PRESIDENT'S
 DESIGNEE, WHO SHALL SERVE AS THE CHAIRPERSON OF THE BOARD; THREE MEMBERS
 APPOINTED BY THE GOVERNOR; THREE  MEMBERS  APPOINTED  BY  THE  TEMPORARY
 PRESIDENT  OF  THE SENATE; THREE MEMBERS APPOINTED BY THE SPEAKER OF THE
 ASSEMBLY; ONE MEMBER APPOINTED BY THE MINORITY LEADER OF THE SENATE; AND
 ONE MEMBER APPOINTED BY THE MINORITY LEADER OF THE ASSEMBLY.  ONE OF THE
 GOVERNOR'S APPOINTEES SHALL SERVE AN INITIAL TERM OF TWO YEARS;  ONE  OF
 THE  GOVERNOR'S  APPOINTEES  SHALL SERVE AN INITIAL TERM OF THREE YEARS;
 AND ONE OF THE GOVERNOR'S APPOINTEES SHALL SERVE AN INITIAL TERM OF FOUR
 YEARS. ONE OF THE APPOINTEES OF THE TEMPORARY PRESIDENT  OF  THE  SENATE
 AND  ONE  OF  THE  APPOINTEES OF THE SPEAKER OF THE ASSEMBLY SHALL SERVE
 INITIAL TERMS OF TWO YEARS; AND TWO APPOINTEES OF THE  TEMPORARY  PRESI-
 DENT  OF  THE  SENATE  AND TWO APPOINTEES OF THE SPEAKER OF THE ASSEMBLY
 SHALL SERVE INITIAL TERMS OF FOUR YEARS. THE APPOINTEES OF THE  MINORITY
 LEADER OF THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY SHALL SERVE
 INITIAL  TERMS OF TWO YEARS. THEREAFTER, ALL TERMS SHALL BE FOR A PERIOD
 OF FOUR YEARS. IN THE EVENT OF A VACANCY  OCCURRING  IN  THE  OFFICE  OF
 TRUSTEE  BY  DEATH,  RESIGNATION OR OTHERWISE, THE RESPECTIVE APPOINTING
 OFFICER SHALL APPOINT A SUCCESSOR WHO SHALL HOLD OFFICE  FOR  THE  UNEX-
 PIRED PORTION OF THE TERM.
   2. ON OR BEFORE OCTOBER FIRST, TWO THOUSAND TWENTY-SEVEN, THE NEW YORK
 TITLE  GUARANTY  BOARD  SHALL PROVIDE THE GOVERNOR AND THE LEGISLATURE A
 PLAN FOR THE IMPLEMENTATION OF THE NEW YORK TITLE GUARANTY PROGRAM.
   3. TO THE MAXIMUM EXTENT FEASIBLE, THE STATE  DEPARTMENT  OF  TAXATION
 AND  FINANCE,  THE  DEPARTMENT  OF FINANCIAL SERVICES, THE DEPARTMENT OF
 HOUSING AND COMMUNITY RENEWAL, AND THE DEPARTMENT OF FINANCE OF THE CITY
 OF NEW YORK SHALL PROVIDE THE BOARD WITH SUCH FACILITIES, ASSISTANCE AND
 DATA AS WILL ENABLE THE BOARD TO CARRY OUT THE POWERS AND DUTIES OF  THE
 CORPORATION.    ADDITIONALLY,  TO THE MAXIMUM EXTENT FEASIBLE, ALL OTHER
 AGENCIES OF THE STATE OR SUBDIVISIONS THEREOF SHALL, AT THE  REQUEST  OF
 THE  CHAIRPERSON PROVIDE THE BOARD WITH SUCH FACILITIES, ASSISTANCE, AND
 DATA AS WILL ENABLE THE BOARD TO CARRY OUT THE POWERS AND DUTIES OF  THE
 CORPORATION.
   4. THE PRESIDENT SHALL HAVE THE AUTHORITY TO APPOINT SUCH OFFICERS AND
 EMPLOYEES  AS  IT  MAY  REQUIRE FOR THE PERFORMANCE OF THE DUTIES OF THE
 CORPORATION AND TO FIX AND DETERMINE THEIR QUALIFICATIONS,  DUTIES,  AND
 COMPENSATION,  AND  TO  RETAIN  OR  EMPLOY COUNSEL, AUDITORS AND PRIVATE
 FINANCIAL CONSULTANTS AND OTHER SERVICES ON A CONTRACT BASIS  OR  OTHER-
 WISE  FOR  RENDERING  PROFESSIONAL,  BUSINESS  OR TECHNICAL SERVICES AND
 ADVICE.
   § 3. The state finance law is amended by adding a new section 92-j  to
 read as follows:
   §  92-J.  TITLE  GUARANTY  FUND. 1. THERE IS HEREBY ESTABLISHED IN THE
 JOINT CUSTODY OF THE NEW YORK TITLE GUARANTY CORPORATION AND  THE  STATE
 COMPTROLLER A SPECIAL FUND TO BE KNOWN AS THE "TITLE GUARANTY FUND".
   2.  THE TITLE GUARANTY FUND SHALL CONSIST OF ALL MONEYS COLLECTED FROM
 THE NEW YORK TITLE GUARANTY PROGRAM COLLECTED PURSUANT TO TITLE FOUR  OF
 S. 1082                             4
 
 ARTICLE  TEN-D OF THE PUBLIC AUTHORITIES LAW, AND ALL OTHER MONEYS CRED-
 ITED OR TRANSFERRED THERETO FROM ANY OTHER FUND OR  SOURCE  PURSUANT  TO
 LAW.
   3.  THE  MONEYS IN SUCH FUND SHALL BE AVAILABLE FOR PAYMENT OF ANY AND
 ALL COSTS AND EXPENDITURES  INCURRED  IN  PERFORMING  ANY  OF  THE  WORK
 REQUIRED  IN  ADMINISTERING THE NEW YORK TITLE GUARANTY PROGRAM PURSUANT
 TO TITLE FOUR OF ARTICLE TEN-D OF THE PUBLIC AUTHORITIES LAW,  INCLUDING
 CLAIMS,  NECESSARY RESERVES, STAFFING, ADMINISTRATIVE COSTS AND EXPENSES
 INCIDENTAL AND APPURTENANT THERETO; PROVIDED, HOWEVER, THAT TEN  PERCENT
 OF  THE  MONEYS  IN  SUCH  FUND  SHALL  BE  USED  TO  FUND THE HOMEOWNER
 PROTECTION PROGRAM ESTABLISHED BY THE OFFICE OF THE ATTORNEY GENERAL FOR
 THE  PURPOSES  OF  FORECLOSURE  DEFENSE  AND  HOMEOWNER  EDUCATION;  AND
 PROVIDED,  FURTHER,  THAT TWENTY-FIVE PERCENT OF THE MONEYS IN SUCH FUND
 SHALL BE DIRECTED TO THE NEW YORK STATE DIVISION OF HOMES AND  COMMUNITY
 RENEWAL  TO  FUND  SUCH  DIVISION'S  CONSOLIDATED  PLAN SUBMITTED TO THE
 UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PURSUANT TO 24
 CFR PART 91.
   4. MONEYS IN THE TITLE GUARANTY FUND SHALL BE KEPT SEPARATELY FROM AND
 SHALL NOT BE COMMINGLED WITH ANY OTHER  MONEYS  IN  THE  JOINT  OR  SOLE
 CUSTODY  OF  THE NEW YORK TITLE GUARANTY CORPORATION AND THE STATE COMP-
 TROLLER.
   § 4. Article 64 of the insurance law is REPEALED.
   § 5. Any title policy which was issued prior to the effective date  of
 this  act  pursuant to article 64 of the insurance law shall continue to
 be governed by such article solely for the  purposes  of  administering,
 reserving for and paying claims on such pre-existing policies, under the
 oversight and enforcement of the department of financial services.
   § 6. This act shall take effect January 1, 2027.  Effective immediate-
 ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
 necessary for the implementation of this act on its effective  date  are
 authorized to be made and completed on or before such effective date.

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Senate Bill S1082

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Sponsored By

Jessica Ramos