Here's the text of an announcement we received from Cynthia Kern, In-House Counsel to TitleVest -- a title insurance company:
On January 27, 2009, Governor Paterson signed into law sweeping revisions to sections of the general obligations law dealing with the statutory short form of power of attorney. The comprehensive revisions will result in a completely new form, along with a separate formal rider required when major gifts are involved. Powers of attorney which were properly executed using the old form prior to the new law taking effect will still be considered valid, and the new law continues to allow other non-statutory forms of power of attorney as well.
The changes include requiring the agent's acknowledged signature on the power in addition to the principal's. The power will not become effective until the agent has properly signed the power. A new statutory major gifts rider (SMGR) will require separate execution with two disinterested witnesses, and title companies will be authorized to refuse to underwrite title insurance on transfers of real property made pursuant to the SMGR or a non-statutory power of attorney that does not contain certain express instructions.
Although the new law states it will take effect March 1, a bill has just been introduced to delay the effective date until September 1, 2009. A4392 and S1728 were referred to the Judiciary Committees of the Assembly and the Senate on February 3 and February 5, respectively, and are expected to move quickly through the legislature. The delay has been requested to give additional time for the legal community to become fully educated about the required changes.
We will update you with more information as it becomes available, and welcome your inquiries regarding the changes. In addition, we will send the new form and the SMGR to you as soon as they have been created.
Cynthia Kern, Esq.
TitleVest | 1031Vest | InsureVest
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T 212.757.5800 x223 F 212.757.0466
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TitleVest (TitleVest Agency, Inc) is a leading provider of title insurance, cooperative apartment lien searches, and related real estate services. TitleVest is a policy-issuing agent for First American Title Insurance Company, Chicago Title Insurance Company, Fidelity National Title Insurance Company, Stewart Title Insurance Company, Old Republic National Title Insurance Company and Commonwealth Land Title Insurance Company.
1031Vest (1031Vest, LLC) is a leading Qualified Intermediary for IRC Section 1031 tax-deferred exchanges. A proud member of the Federation of Exchange Accommodators, 1031Vest is fully bonded and insured.
InsureVest (InsureVest Brokerage, LLC) is a full-service property and casualty insurance brokerage offering a full line of business and personal insurance products from its network of the leading and highest-rated insurance carriers.
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