This week we wanted to draw your attention to an interesting case out of the 2nd Department, which addressed and clarified, in part, how title vests when a property owner dies intestate regardless of whether an Administrator is appointed to transfer the decedent’s assets. The relevant facts of, as a well a link to, the case are set forth below:
The owner of real property in Kings County died intestate. There were six distributees of his Estate, three of whom conveyed their interests to a corporation, which then brought an action to partition and sell the property. The Supreme Court, Kings County, dismissed the action without prejudice to bring a proceeding for the same relief in the Surrogate’s Court, as an administrator had been appointed for the Estate. The Appellate Division, Second Department, reversed and remitted the matter for consideration of the Plaintiff’s motion for summary judgment. According to the Appellate Division,
“[c]ontrary to the Supreme Court’s determination, dismissal of this action was not warranted on the ground that the Surrogate’s Court issued letters of administration…When a property owner dies intestate, title to real property automatically vests in his or her distributees as tenants in common
[citations omitted]. This vesting by decedent occurs by operation of law at the time of the decedent’s death, regardless of any failure to appoint an administrator or to file new deeds [citation omitted], or, if an administrator is appointed, without the necessity for any act by the administrator [citation omitted]…[The corporation], as the alleged holder of a 50% interest in the subject property as a tenant in common with the defendants, had the right to maintain this action…in the Supreme Court, Kings County [citations omitted].” LCD Holding Corp. v. Powell-Allen, 2022 NY Slip Op 01447, decided March 9, 2022, is posted at https://www.nycourts.gov/reporter/3dseries/2022/2022_01447.htm
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