Lien Duration

We wanted to pass along an interesting case (Sterling Recoveries, Inc. v. Alejandro Erazo; 2022 NY Slip Op 50662(U); 75 Misc. 3d 1225(A)) which highlights the importance of timely renewing expiring Judgments on real property to avoid the possibility of a “lien gap.” In analyzing the Plaintiff’s motion for an Order seeking to renew an expired Judgment, the Court laid out the below summary of the legislative history of the relevant CPLR Sections identifying the distinction in the duration between a New York money judgment (20 years) vs. a Judgment resulting in a real property lien (10 years), as well as the methods to renew such expiring real property liens:

"Although a New York money judgment is enforceable for 20 years (see CPLR 211 [b]), a real property lien resulting from the judgment is viable for only 10 years (see CPLR 5203 [a])" (Premier Capital, LLC v Best Traders, Inc., 88 AD3d 677 [2d Dept. 2011]). "Because a lien on real property is only effective for 10 years and a money judgment is viable for 20 years (see CPLR 211 [b]; 5203 [a]), the Legislature enacted CPLR 5014 to allow a judgment creditor to apply for a renewal of the judgment lien" (Gletzer v Harris, 12 NY3d 468, 473 [2009]). "To avoid expiration of the judgment lien at the end of 10 years, the Legislature amended CPLR 5014, in 1986, to allow real property lienholders to seek timely renewal of the judgment lien during the last year of the pendency of the original lien" (id.). If the renewal judgment is issued within the 10-year lien period, then the lien takes effect upon the expiration of the first 10-year lien period, thereby permitting the judgment creditor to avoid a lien gap (see Gletzer v Harris, supra at 474-475; Schiff Food Prods., Co., Inc. v M M Import Export, 84 AD3d 1346, 1348 [2d Dept. 2011]). However, CPLR 5014 (1) also permits a judgment creditor to commence an action for a renewal judgment where 10 years have elapsed since the judgment was originally docketed" (Premier Capital, LLC v Best Traders, Inc., supra [internal quotation mark omitted]). "In that circumstance, the judgment creditor is not prevented from obtaining a renewal judgment, but will not be entitled to avoid a lien gap by operation of CPLR 5014" (id.).”

In granting the Plaintiff’s motion, the Court found unpersuasive the Defendant’s argument that he had transferred title in 2019 (a little more than three (3) years after the expiration of the initial money judgment) to the only real property that he owned. The Court went on to hold that an action for a renewal judgment may be successfully commenced where ten years from the docketing of the original judgment has passed, but the judgment creditor will have a “lien gap” from the date of expiration of the original judgment and the filing of the renewal judgment in the office of the County Clerk.
We have included a link to the case for your convenience:
https://www.nycourts.gov/reporter/3dseries/2022/2022_50662.htm