#

Ease of Doing Business in

United States

United States Download Profile (1994.2KB, pdf)
Region OECD high income
Income Category High income
Population 321,418,820
GNI Per Capita (US$) 54,960
City covered New York City, Los Angeles

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 8 7 down
1
82.45 82.46 down
0.01
Starting a Business 51 45 down
6
91.23 91.22 up
0.01
Dealing with Construction Permits 39 37 down
2
75.74 75.73 up
0.01
Getting Electricity 36 32 down
4
83.39 83.39
-
Registering Property 36 37 up
1
76.80 76.85 down
0.05
Getting Credit 2 2
-
95.00 95.00
-
Protecting Minority Investors 41 39 down
2
64.67 64.67
-
Paying Taxes 36 34 down
2
83.85 83.89 down
0.04
Trading across Borders 35 35
-
92.01 92.01
-
Enforcing Contracts 20 20
-
72.61 72.61
-
Resolving Insolvency 5 4 down
1
89.19 89.20 down
0.01

Viewing the data for

DB 2017 DTF (% points):

76.66

DB 2016 DTF (% points):

76.74

Change in DTF (% points):

down0.08

STANDARD PROPERTY TRANSFER
Property value USD 2,821,855
City New York City
Indicator New York City OECD high income
Procedures (number) info_outline 4 4.7
Time (days) info_outline 12 22.4
Cost (% of property value) info_outline 3.5 4.2
Quality of the land administration index (0-30) info_outline 18 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain a title report

    Agency: Private Company

    A title report is obtained from one of many competing private companies, regulated by the state. Fees for title insurance are set by state regulators. Fees for services vary. A title report is not technically mandatory, but is routinely used to analyze the quality of title. A title report is an essential prerequisite to securing title insurance. No title company would offer title insurance without a title report tracing the deed history and clearly articulating the liens, covenants and other limitations on title. A title report and title insurance are typically required by lenders. Most buyers purchase a title insurance to assure the title is clear (i.e. no defects in the title). One application for title report and title insurance is enough. Thus, no additional Procedure or time is needed. Banks usually require title insurance for a property to be accepted as a collateral for a loan. The cost of such title insurance is USD 9,500 given the assumptions of our case study, including the cost of the title report.

    About 10 days (simultaneous with Procedure 2) 9,500 (title report and title insurance)
    * 2

    Conduct an environmental review

    Agency: Private Company

    The environmental review is typically conducted by a private firm specializing in the field. It is not technically mandatory, but a prudent investor will routinely require an environmental review and no bank would ever advance a commercial mortgage without conducting an environmental review. The environmental review may have up to 3 phases: 1. The history of the property in the public records is analyzed to check if there was any record of contamination or any violation. 2. If yes, an inspection of the property takes place, where some samples are taken 3. Clean-up phase if needed.

    Varies depending on factual circumstances (simultaneous with Procedure 1)

    (According to the assumptions of the case study, it is assumed that no violation nor problem is found in the first phase of the review, and that the whole Procedure does not take more than the 10 days that it takes to obtain the title report in Procedure 1)
    Depends on nature and extent of contamination, if any
    3

    The buyer obtains and fills the forms needed for the transfer

    Agency: Office of the City Register

    All NYC transfers should be done using ACRIS system. It generates all of the required transfer tax forms, i.e. NYS Transfer Tax Form TP-584 regarding real estate transfer tax, and the NYS Real Property Transfer Report (Equalization) Form RP-5217, as well as necessary documents as smoke detector's affidavit, customer registration, etc. The state forms RP-5217 and TP-584 are available in many local government offices and on the Internet. Additionally, the property disclosure form is typically drafted by the attorney for the seller and given to the buyer prior to or at closing. The title deed is usually prepared by the seller. The fees for state forms RP-5217 and TP-584 are typically collected by the title company at closing, prior to recording, and must be paid to the state upon filing the deed for recording with the registry. It is common practice to obtain title insurance from one of the competing title insurance companies. (The cost of title insurance will cost $9,500). The title insurance can only be acquired at closing, after the transaction has been completed between buyer and seller and the price has been paid. Where financing is involved, the lender typically requires the purchaser to obtain insurance as a condition of the loan. There is a separate mortgage recording tax required to be paid, in addition to the real property transfer tax. Real property transfer tax is paid by the seller at rates 0.4% for NYS transfer tax and 2.625% for NYC transfer tax (of property value exceeding $500,000). The title insurance company will take the responsibility of recording the title at the county clerk.

    1 day Filing fee for state form RP-5217 is $250 + Filing fee for state form TP-584 is $5 + 2.625% of property value greater than $500 000 (NYC transfer tax) + $2.00/500 of property value (NYS transfer tax)
    4

    The title is recorded with the County Clerk

    Agency: County Clerk

    The transfer deed (together with the applicable tax forms and payment) is then presented to the applicable public official, e.g. county clerk, for recordation in the public records of the jurisdiction. The date of acceptance of the deed by the clerk is the date which controls for transfer purposes. Nonetheless, it often can take many weeks (and even months) for the actual recordation to take place and become available on the public record. However, the transaction is valid and opposable to third parties on the date it is submitted.
    Although the law states that title passes upon delivery of the deed, where there are competing claims the law recognizes the 1st recorded deed.
    The title insurance company usually takes the responsibility of recording the title at the County Clerk, paying the fees for state forms RP-5217 and TP-584 .

    The documentation shall include:
    Title deed
    NYS Real Property form TP-584 on real estate transfer tax
    Property Disclosure Form
    Real Property form RP-5217
    Title Insurance

    1 day $32 + $5 cover page + $5 per page (assuming that the title consists of about 12 pages)

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 18.0
    Reliability of infrastructure index (0-8) 7.0
    What is the institution in charge of immovable property registration? Office of the City Register
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Different databases but linked 1.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 3.0
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Freely accessible by anyone 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://a836-acris.nyc.gov/CP/
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: https://a836-acris.nyc.gov/CP/CoverPage/CalculateTaxes
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? No 0.0
    Number of property transfers in the largest business city in 2015:
    Who is able to consult maps of land plots in the largest business city? Freely accessible by anyone 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? No cost 0.5
    Link for online access:
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 4.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? Yes 2.0
    Land dispute resolution index (0–8) 4.0
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? No 0.0
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Yes 0.5
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar; Lawyer.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Registrar.
    Is there a national database to verify the accuracy of identity documents? No 0.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? NYS Supreme Court
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Between 1 and 2 years 2.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015:
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0