Recording Gap Risk
Recording gap risk is the exposure that arises between closing/funding and successful recording/indexing of the deed/mortgage, during which a competing interest might be recorded or a prior unrecorded interest might surface. The risk is rooted in NY's first-to-record protections for good-faith purchasers and encumbrancers.
- Where it applies
- New York State
- When it comes up
- Closing → post-closing
- Property types
- All deeded transactions
In practice
In NYC, e-recording rejection loops (instant rejection notices) make operational controls around submission quality central to managing gap exposure.
Related terms
Race-noticeconstructive noticee-recording rejectiongap coverage (concept).
Risk and Liability Terminology
- Closing Protection Letter (CPL)
- Closing Wire Fraud / Business Email Compromise (BEC)
- Deed Fraud
- Directors and Officers (D&O) Insurance
- Errors & Omissions (E&O) Insurance
- Force Majeure
- Indemnification
- Limitation of Liability
- Liquidated Damages
- Notice of Recorded Document (NRD) Monitoring
General information, not legal, tax or financial advice.