Preparing for the TIRSA Manual's 7th Revision: Key Updates for Real Estate Professionals

This week we wanted to update you on significant changes being implemented to the Title Insurance Rate Service Association (TIRSA)  Manual which will take effect on October 1, 2024 (collectively the “7^th Revision to the TIRSA Manual”).

In case you do not know, TIRSA is the organization licensed by the NYS Department of Financial Services that provides the Title Insurance Industry with both guidelines for the pricing and availability of title insurance premiums as well as the specific Form Polices and Endorsements available in NYS.   As of 1993, TIRSA’s published Rate Manual sets forth all of the rules, guidelines, risk classifications, premiums and insurance rates for both Owner’s and Loan policies, endorsements and other forms used by Agents and Underwriters that are members of TIRSA.
 
Some of the changes implemented by the 7^th Revision to the TIRSA Manual will have no effect on the typical real estate transactions that you deal with in your everyday practice, but others will change the type of coverage you are accustomed to receiving.  Below is a general summary of some of the changes you will encounter as of October 1, 2024.  Please note that we will continue to update you as additional changes necessitated by the 7^th Revision to the TIRSA Manual as they become available once the new Policy Endorsements are issued and vetted on individual transactions.
 
                The 7^th Revision to the TIRSA Manual:
 

1. Officially mandates the replacement of the current 2006 American Land Title Association (ALTA) Owner’s and Loan Policy Forms with the “new” 2021 Form Policies.  NOTE: While TIRSA had prepared and proposed new Form Policies in 2021, their use was not authorized until this 7^th Revision;
2. Amends the pricing structures for certain Endorsements based on the whether the land covered in the policy is designated as residential or commercial;
3. Adopts a number of Endorsements that were previously unavailable in NYS, including those classified as “special risk” endorsements.  Certain of these new Endorsements may require additional types of searches so availability for a particular transaction will be determined on a case-by-case basis.   A complete list and comparison of the new available Endorsements will be provided in a further update email.
4. Eliminates the Title Agent’s and Underwriter’s ability to provide no-fee Affirmative Insurance in any policy unless such Affirmative Insurance is contained in an approved Endorsement set forth in the revised TIRSA Rate Manual. NOTE: In the event that a ProForma Policy was issued with Affirmative Insurance prior to October 1, 2024, but the transaction closes on or after October 1, 2024, the Final Issued Policy will have to be amended to replace the Affirmative Insurance with a corresponding new Endorsement, if available; and
5. Modifies the coverage afforded in certain of the existing TIRSA endorsements and expands coverage not previously available.  Please contact the Home Team to discuss whether certain endorsements may be beneficial to your clients.  

 
It is important to note that all Underwriters are members of TIRSA and therefore, must comply with the requirements of the 7^th Revision to the TIRSA Manual effective October 1, 2024. 

We understand that the changes associated with the 7th Revision to the TIRSA Manual may cause some confusion in the short-term.  Rest assured, the Home Team will make every possible effort to keep our clients updated as to how these changes will impact your transactions and how we can provide the best coverage available to your clients.