Buying a home in Oyster Bay comes with a lot of paperwork, and title insurance is one item that raises questions. You want to protect your investment, avoid surprises, and get to a smooth closing. In this guide, you’ll learn what title insurance covers, how the title search works in Nassau County, what it costs, who typically pays, and the red flags to watch for before you sign. Let’s dive in.
Title insurance at a glance
Title insurance is a one-time premium you pay at closing. It protects against covered defects in the property’s title that existed before you bought the home and are discovered later. Think forged signatures in the chain of title, undisclosed liens or judgments, or errors in public records.
There are two types of policies. An owner’s policy protects your equity up to the policy amount, which is usually the purchase price. A lender’s policy protects your mortgage lender up to the loan amount while the loan is outstanding.
Coverage has limits. Typical exclusions include zoning and land-use restrictions, boundary issues a survey would reveal unless endorsed, certain easements, and defects created after the policy date. If you need broader protection, you can add endorsements to the standard policy for an extra fee.
Why it matters in Oyster Bay
Oyster Bay has many older homes and long ownership chains. Older records can increase the odds of missing documents, ambiguous descriptions, or recording errors. Waterfront and access issues are also more common, including bulkhead ownership and riparian rights. Village-level easements and private road agreements can appear as exceptions on title that affect access and use.
Because the lender’s policy only protects the bank, the owner’s policy is strongly recommended. It is a one-time cost that protects you as long as you own the property, and it can also protect your heirs.
Owner vs. lender policies
- Owner’s policy: Optional but recommended. Protects your equity up to the insured amount for as long as you own the property.
- Lender’s policy: Typically required by the lender. Protects the lender’s interest only and does not protect your equity.
If you are financing your purchase, expect to see a lender’s policy on your closing statement. Choosing an owner’s policy is an added layer of protection for you, not just for your bank.
Title search in Nassau County
A title company or title attorney examines public records at the Nassau County Clerk and related offices. The result is a title commitment, which is a promise to issue a policy if certain conditions are met.
- Schedule A lists the basics: the property, the insured parties, and the policy amounts.
- Schedule B lists exceptions. These are items the policy will not cover unless removed or endorsed. You should review this list carefully.
Timing varies with complexity. A straightforward search can take a few days to a week. In Nassau County, it is common to allow 2 to 4 weeks because older chains, probate issues, or outstanding liens can take time to clear.
Oyster Bay issues to watch
- Older records and long chains of title that may have gaps or ambiguous descriptions
- Village easements, private street agreements, shared driveways, and beach or access covenants
- Waterfront factors such as bulkhead ownership, riparian rights, and tidal wetland permits
- Special assessments and unpaid county, town, village, or school district taxes
- Subdivision restrictions and historic covenants that affect improvements
Costs and who pays in New York
Title insurance premiums in New York are filing-based with the state. For a given purchase price and loan amount, premiums are often similar across companies, though search fees, settlement charges, and endorsements can vary. You pay the premium once at closing.
Common title-related line items include:
- Title search and examination fee
- Title insurance premium for the owner’s policy and the lender’s policy
- Closing or settlement fee
- Endorsement fees if you add coverage
- Recording fees and local taxes, which are separate from title insurance
Who pays can be negotiable. In many New York transactions, the borrower pays for the lender’s policy because it protects the loan. Who pays for the owner’s policy varies by local custom and contract. In Nassau County, practices can differ by village or hamlet. Confirm the contract language early and request a preliminary closing statement so you know who is paying which items.
Endorsements you might add
Endorsements can broaden coverage for specific risks. Common choices include survey coverage, access, zoning, and certain environmental restrictions. Costs and availability vary by underwriter. If you are buying a waterfront property, ask about coverage options that clarify access or riparian rights where available.
What to expect at closing
Before closing, you receive a title commitment showing the company’s willingness to insure and any exceptions listed in Schedule B. Review that list with your attorney and ask if any exceptions can be removed or covered by an endorsement.
At or after closing, you should receive your final policies and the recorded deed and mortgage once the county confirms recording. The Closing Disclosure or settlement statement will itemize premiums, search fees, and recording costs and show who paid each line item.
Questions to ask before you sign
- Who is paying for the owner’s policy in this transaction, per our contract?
- Can I get a written estimate of the premiums, search fees, and endorsements?
- What exceptions appear on Schedule B, and how might they affect my plans for the property?
- Are survey, access, zoning, or waterfront-related endorsements available, and what do they cost?
- Are there any liens, tax delinquencies, or judgments that must be cleared before closing?
- When will the final policies and recorded documents be delivered?
Common red flags and how to respond
- Unreleased mortgages or recorded assignments: Require payoff and formal releases before closing.
- Probate or missing conveyances: Obtain clear proof of authority to sell, such as an executor’s deed or court order.
- Municipal violations or unpaid assessments: Ask the seller to cure the issue or escrow funds at closing.
- Boundary uncertainty or unrecorded easements: Order a current survey or secure a survey endorsement.
- Large Schedule B exceptions that affect use: Discuss with your attorney and consider endorsements.
Timeline and responsibilities
Your title company works with both attorneys, your lender, and municipal offices to clear conditions before closing. You should review the title commitment and the preliminary closing statement ahead of time so you are ready to fund any premiums you are responsible for. After closing, the title company submits documents for recording with the Nassau County Clerk and issues final policies once recording is confirmed.
Local resources and next steps
- Nassau County Clerk for recorded deeds, mortgages, easements, and releases
- Nassau County Department of Assessment for property tax and assessment history
- Town or Village of Oyster Bay offices for permits, village taxes, and municipal liens
- FEMA flood maps and New York State environmental resources for floodplain and coastal considerations
- Local real estate attorneys and title companies for estimates and endorsement options
Practical tips for Oyster Bay buyers:
- Ask for a preliminary title commitment and estimated closing statement early. This helps you confirm coverage, exceptions, and who is paying which items.
- Clarify who pays the owner’s policy in your contract. Do not assume local custom.
- For older homes, consider survey coverage or a current survey to reduce boundary risk.
- For waterfront properties, confirm any recorded easements, riparian rights, and municipal restrictions.
- Remember that title insurance is a one-time cost at closing and is separate from homeowners or flood insurance.
Ready to move in Oyster Bay?
If you want a clear, confident path to closing, partner with a team that blends financial rigor with local know-how. The Farber Locke Team advises North Shore buyers and sellers with an eye for detail and a steady hand at the closing table. Have questions about title next steps or preparing your home for market? Reach out to get tailored guidance or get your instant home valuation.
FAQs
What does an owner’s title policy cover in New York?
- It protects your equity against covered, pre-existing defects like undisclosed liens, forged signatures, or recording errors, subject to policy terms and exceptions.
Do I need an owner’s policy if my lender has one?
- Yes if you want your equity protected, since the lender’s policy protects only the bank’s loan amount and does not cover your ownership interest.
How long does a Nassau County title search take?
- Simple files can take days, but many transactions take 2 to 4 weeks due to older records, probate questions, or issues that require clearance.
Who typically pays the owner’s policy in Oyster Bay?
- It is negotiable and varies by local custom and contract, so confirm the responsibility in your purchase agreement and on the preliminary closing statement.
What is Schedule B on a title commitment?
- Schedule B lists exceptions and items the policy will not cover unless removed or endorsed, such as easements, covenants, or certain survey-related matters.
Which endorsements should Oyster Bay buyers consider?
- Common options include survey, access, and zoning endorsements, and for waterfront properties, coverage that clarifies access or riparian rights where available.
