The Trouble in Mount Vernon

The ongoing situation in the City of Mount Vernon, NY has been reported extensively in the press. (see footnote)

The NYSLTA has no comment or position on the intra-municipal claims, counter-claims and legal proceedings.  Our concern is the timely recording of deeds and mortgages for the protection of homebuyers in the City of Mount Vernon.

In 2015, Mount Vernon and two other Westchester County municipalities enforced a local law requiring payment of a local transfer tax to the municipality to get a receipt before the deed could be recorded.

Deeds are physically recorded with the County Clerk of Westchester County, located in White Plains or recorded electronically using the County’s PREP system.

This process has become more complex and perilous for people who want to buy a home in Mount Vernon. 

As reported in the news stories referenced in the footnote and elsewhere, the City Comptroller has refused to accept payments or issue receipts for the local transfer tax, pending her audit of the title transfer documents.

This delay, lasting from days to weeks, puts the clear title to the property in limbo and puts the innocent buyer in jeopardy of a challenge to their ownership in the period between paying for the property and the recording of the deed. The concerns of the title insurance industry are detailed in a series of letters sent by this Association and its member companies to the Comptroller in Mount Vernon.

The transfer of real property is often complex and usually handled by an attorney.  Title insurance is one element of the real estate finance process, but it is a vital one –  title insurance makes it possible to secure a mortgage, the title company does extensive research to ensure there is no challenge or defect in the title to the property being acquired and the policy indemnifies the consumer from any covered risk to their title for as long as they own the property.

The dysfunction in Mount Vernon is causing unacceptable delays between the financial exchange at the closing table and the recording of the deed that secures the buyer’s ownership rights.

This delay increases the risks to our policy holders, the innocent buyers. The motto of the real estate market in Mount Vernon should be caveat emptor – buyer beware.

Newslinks

https://www.lohud.com/story/news/local/westchester/mount-vernon/2019/04/18/mount-vernon-comptroller-records/3510120002/

https://www.lohud.com/story/news/local/westchester/mount-vernon/2019/04/04/judge-mount-vernon-comptroller-mayor-access-financial-records/3361825002/

https://www.yonkerstribune.com/2018/09/mount-vernon-sues-its-own-comptroller-to-pay-1-million-owed-to-vendors

https://fios1news.com/news/mount-vernon-comptroller-battles-lawsuit-saying-she-is-not-paying-citys-bills/

Documents (see attachments below)