The Upcoming 7th Revision to the Title Insurance Rate Service Association (TIRSA) Rate Manual is effective on October 1, 2024

What is TIRSA?

The Title Insurance Rate Service Association (TIRSA) is an organization licensed by the New York State Department of Financial Services that provides guidelines for the pricing and availability of title insurance premiums and products in New York State. Since 1993, TIRSA has published, and revised, its TIRSA Rate Manual, which sets forth rules, definitions, risk classifications, premiums and rates for title insurance policies, endorsements and other forms used by members of TIRSA. Notably, any deviations from the TIRSA Rate Manual must be approved by the Superintendent of the New York State Department of Financial Services. The 7th revision to the TIRSA Rate Manual goes into effect on October 1, 2024.

What is the 7th Revision?

Briefly, the 7th revision to the TIRSA Rate Manual can be summarized as follows:

• Adopts and mandates the use of the “new” 2021 American Land Title Association (ALTA) owner’s and loan policy forms, replacing the prior 2006 ALTA owner’s and loan policy forms;
• Prohibits the use of no-fee affirmative insurance, additional insurance or express insurance unless contained in an approved endorsement contained in the TIRSA Rate Manual;
• Adopts a number of endorsements previously unavailable in New York State, including a number of so-called “special risk” endorsements;
• Provides for different pricing structures for certain endorsements depending on whether the land covered in the policy is residential or commercial; and
• Amends a number of existing TIRSA endorsements.

What are the impacts of the 7th Revision?

The newly revised TIRSA Rate Manual goes into effect on October 1, 2024, and will impact any real estate transaction closing for which title insurance is to be issued taking place after such date.

• Due to the prohibition on the use of no-fee affirmative insurance, title costs for real estate transactions will likely increase due to obtaining coverage via paid endorsements.
• Issuance of certain endorsements may now require additional title searches, survey requirements and/or other diligence.
• Lenders and attorneys representing lenders may need to issue updated closing disclosures to reflect amended closing costs for loans in progress.
• Any title report, so-called “proforma” policy, and/or title invoice obtained prior to October 1, 2024, may require amendment and/or revision to reflect and incorporate the substantial revisions to the TIRSA Rate Manual, and will need to be carefully re-examined to determine whether any coverage issues and/or gaps may be presented by the newly revised TIRSA Rate Manual requirements.

We are closely monitoring the 7th Revision of the TIRSA Rate Manual so that we can assist our clients in navigating the changes ahead.

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