This week we wanted to bring your attention to a recent Supreme Court case out of New York County which highlights, in part, the importance of drafting Contract provisions that clearly define the Seller’s obligations with respect to crucial elements of the deal such as obtaining a Final Certificate of Occupancy or the existence of leaks into or emanating from the premises. Justice Ramseur’s decision awarded the Defendant (Seller) the retention of the disputed Contract Downpayment together with Legal Fees to be determined at a subsequent inquest hearing. The relevant facts of and a link to the case are set forth below.

Today we wanted to bring your attention to an interesting decision out of the Appellate Division, 2nd Department which held, in part, that a subsequent Purchaser for value, as well as the Purchaser’s Mortgage Lender, acquired their respective interests subject to a prior judgment lien; the amount of which had been mis-indexed in the County Clerk’s office. The relevant facts of Myrtle 684, LLC v Tauber; 2020 NY Slip Op 07901 [189 AD3d 1431], along with a link to the case are set forth below:

By now we are certain that you are aware of the increased risk associated with fraudulent deed transfer schemes being perpetrated across the country by scammers looking to take advantage of unsuspecting property owners. The costs in terms of legal fees, time, stress, lost sale opportunities and aggravation can be immeasurable if you or your clients become the unfortunate victims of one of these scams.

Supplementing our 01/03/2023, 01/17/2023 and 3/14/2023 Title Tuesday updates regarding the legislation that is set to change the adjusted allowances and tax rates used to calculate the Peconic Bay Community Preservation Fund Tax (CPF) in certain towns effective as of April 1, 2023, you will recall that the increased tax rates will not apply to transactions where the Contract of Sale was executed prior to April 1, 2023.

This week we wanted to highlight a recent First Department decision that held, in part, that a Fee Owner’s Policy did not provide coverage for a claim related to an unrecorded Deed in favor of an occupant in possession where the Insured Owner had prior knowledge tenants were placed in the Premises and rents were being collected.

Supplementing our 01/03/2023 and 01/17/2023 Title Tuesday updates regarding the legislation that was set to change the adjusted allowances and tax rates used to calculate the Peconic Bay Community Preservation Fund Tax (CPF) in certain towns effective as of April 1, 2023, we have now been advised by the Suffolk County Clerk that the increased tax rates will not apply to transactions where the Contract of Sale was executed prior to April 1, 2023.

How many times recently have you left the closing table worrying about whether that Wire Transfer for your payoff will actually be received by the Bank before you get back to the office? As Wire Transfers become more and more prevalent in our real estate transactional world, the opportunity for fraud and misappropriation of funds increases exponentially.

We wanted to take this opportunity to remind you to remain vigilant and continue to be on guard against the ever-increasing attempts of unscrupulous individuals to commit fraudulent land sales. These scams can involve the sale of a house or other types of real property, but often focus on the sale of a vacant lot that is owned free of encumbrances and liens. The “scammer” typically has done online research and is familiar not only with the property itself but with real estate transactions in general. The “Seller” therefore is usually able to discuss the proposed transaction with a high degree of accuracy.

This week we wanted to direct your attention to a recent First Department decision which held that an unrecorded discharge of mortgage was insufficient to vacate an Order of Foreclosure.  The relevant facts of and a link to the case are set forth below.

Can a Lis Pendens be used to secure repayment of a loan purportedly given to purchase real property?? That is one of the questions that was addressed in a very interesting Nassau County Supreme Court case and the answer, according to Justice Leonard D. Steinman, is - NO! Below is a summary of the relevant facts of the case and a link to the decision and order:

It has come to our attention that there have been several recent instances of vandalism to, and/or straight-out thefts from, overnight courier drop boxes throughout the metropolitan area. While thankfully this has not directly impacted any of Home Abstract Corp.’s payoff deliveries, these events have resulted in payoff checks being diverted so that the intended recipient does not receive the payoff funds.

This week we wanted to take the opportunity to revisit the effect of former Governor Cuomo’s Executive Orders which were issued in response to the Covid-19 outbreak, as they relate to the extension of deadlines and tolling periods of certain types of Liens.

This week we wanted to highlight an interesting decision out of the Second Department which held that that a judgment creditor could not benefit from the from the protection of N.Y. Prop. Law § 290 et. seq.(New York’s Recording Statute). A summary of the relevant facts as well as a link to the case are set forth below.

This week we wanted to remind you about current legislation that will affect how the Peconic Bay Community Preservation Fund Tax (CPF) is calculated in several Peconic Bay towns in Eastern Long Island. Effective January 1, 2023, pursuant to revisions to New York Tax Law 1449-BB and the local town codes in East Hampton, Shelter Island, South Hampton and Southold (NOTE – The town of Riverhead did not change its CPF allowances), all conveyances made in those towns will be subject to the following adjusted allowances when calculating the CPF:

As we are fast approaching the end of 2022, we wanted to remind you of a significant piece of legislation that became effective earlier this year and amended how judgment interest is calculated on Money Judgments in certain circumstances. Back on December 31, 2021, Governor Hochul signed into law Chapter 831 of the Laws of 2021 amending Sections of the CPLR to reduce the interest rate on money judgments against natural persons involving “consumer debt” (as defined in CPLR Section 5004(b)) from 9% to 2% per annum.

With the proliferation of cases involving fraudulent Deed transfers in the news these days, we wanted to bring your attention to a 2nd Department case where a defrauded Plaintiff was successful in having such a Deed set aside by Court Order. The relevant facts and a link to the case are set forth below but, from a strategic standpoint, it is important to note that the Plaintiff’s Complaint included a Cause of Action to Quiet Title which is governed by a ten (10) year Statute of Limitations as opposed to just a fraud claim which would have been subject to a six (6) year Statute of Limitations.

This week we wanted to bring your attention to an interesting case which determined that additional professional and legal fees were properly chargeable to a licensor where a prior Access License Agreement, issued in accordance with Real Property Actions and Proceedings Law (“RPAPL”) Section 881 (“Access to adjoining property to make improvements or repairs”), had to be further extended and modified. The decision, in part, turned on the specific language set forth in the agreement as to the “reasonableness” of circumstances which necessitated the additional Professional Fees. The relevant facts and a link to the case are set forth below.

Today we wanted to bring your attention to very recent legislation signed by Governor Kathy Hochul (S.6522A/A.7363A) designed to protect patients facing steep medical bills that can lead to wage garnishment or liens against their property.

As we approach the end of the year, we wanted to remind you of the upcoming deadline for certain property owners to complete and file their gas piping inspections in accordance with NYC Local Law 152 of 2016 (“LL 152”).You can review LL 152 using the following link:ll152of2016.pdf (nyc.gov). No later than December 31, 2022, all buildings (except for one- and two-family homes, and other buildings classified in Occupancy Group R-3), in Community Districts 4,6,8,9, and 16 in all five (5) boroughs must complete a gas piping system inspection of their property to be conducted by a Licensed Master Plumber (LMP), or a qualified individual working for an LMP.

Today we wanted to direct your attention to a very interesting case out of the Appellate Division, 2nd Department which involved the analysis of the effects of a fraudulent executed Power of Attorney and Deed on the enforceability of a mortgage. The relevant facts of the case and a link to the Appellate Court decision are described below.