Bulletin: NY000657

As previously reported in Bulletin NY000644, it has come to our attention that the City of Mount Vernon’s Finance office is closed and/or is not processing the Mount Vernon Real Property Transfer Tax Returns (the “Mt. Vernon RPT”) in a fashion sufficiently timely to comply with other laws.  Inasmuch as the Westchester County Clerk’s Office will not record a deed pertaining to a property in the City of Mount Vernon without the Mt. Vernon RPT stamped as having been paid, this effectively means that we are currently unable to record deeds pertaining to properties located in the City of Mt. Vernon.  Further, we have learned that some of our policy-issuing agents may be in possession of deeds from transactions which closed some time ago, and which remain unable to record.

Covered Risk 1 in both the 2006 ALTA form of Owner’s Policy and Loan Policy insure against “Title being vested other than as stated in Schedule A, and Covered Risk 2(a)(vii) of the 2006 ALTA form of Owner’s Policy insures against defects in Title (as that term is defined therein) caused by “a document not properly filed, recorded or indexed in the Public Records…”  Accordingly, the inability to record a deed presents a significant claims risk to Stewart Title Insurance Company.

Based upon the foregoing and until further notice, in order to insure transactions involving deeds in the City of Mt. Vernon, we must continue to require the policy-issuing agent to confirm that the parties have paid the Mt. Vernon RPT prior to closing.  Unless the parties present a copy of the Mt. Vernon RPT stamped “Paid” by the City of Mt. Vernon Finance Office, Stewart Title Insurance Company’s policy issuing agents are no longer authorized to insure transactions which require that a deed be recorded for properties located within the City of Mt. Vernon. 

We will issue supplemental bulletins as necessary in order to further assist you.

As a reminder, you are responsible for knowledge of and compliance with the information contained in all Bulletins and Special Alerts as posted on Virtual Underwriter (http://www.vuwriter.com), whether you receive them by electronic distribution or not.

In the event you have any questions regarding the above please contact Stewart Title Legal Department at 212-922-0050 and speak with any Underwriting Counsel.

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