Resource Center
G-1
Building Department Notice of Pendency (Lis Pendens) CORPORATIONS
C-1
Corporate
Seal
D&B-1
Description -
Defect Caused by Change in Street Lines
E-1
Administrator's Deed - Additional Bond
L&J-1
Federal Tax
Liens
M-1
Foreclosure |
GENERAL PRACTICESG-1 BUILDING DEPARTMENT NOTICE OF PENDENCY (Lis Pendens) A Notice of Pendency to enforce Building Department violations may be disregarded if a search shows that the violations which are the subject of the notice of pendency are no longer pending.
A. The deed is on record for more than 10 years; or B. There is other evidence or record of the payment of valuable consideration including, without limitation, the simultaneous execution of a purchase money mortgage or the payment of transfer taxes. Where there is a time lapse between the date of a deed and the date of its recording, no objection needs to be raised where the deed has been on record for more than 10 years. If the deed has been on record for 10 years or less, the period search in a Surrogate's office should be completed against the grantor from the date of the instrument to the date of recording in the county where the grantor resides and in the county where the property is situated. If no death was found then the question should be passed unless the grantee, or some one connected with him, was still in title and more definite information could therefore be obtained, or unless the death of the grantor is definitely known. The question of delivery should not be raised where the interval between the date of the deed and the recording date thereof was less than 30 days unless there was affirmative knowledge of the death of the grantor prior to recording. Under this 30 day period no Surrogate's search need be made. The question of delivery should not be raised where the interval between the date of the deed and the recording date thereof was greater than 30 days where the public record evidences a purchase money mortgage to an institutional lender or the seller(s) which is dated contemporaneously with the deed.
In the City of New York, an Unsafe Building Notice of Pendency filed for more than 1 year may be passed if: A. Within 1 year from its filing a final judgment has not been entered in said proceeding directing the demolition of the structure; and B. Searches have been made for the period of 1 year from the date of filing of the Unsafe Building Notice with noting found.
Financing Statements, other than a financing statement filed against a Cooperative Interest in a Cooperative Organization, may be passed where they are on file for more than 5 years and there has been, was a change of ownership, or there will be a change at closing. Where, however, the transaction is to insure a mortgage and there is to be no change of ownership, then the Financing Statements should be excepted unless they are on file for more than 5 years and 30 days and have not been renewed.
Exception: Financing statements filed against a Cooperative
Interest in a Cooperative Organization prior to July 1, 2001
are effective until June 30, 2006. Financing statements
against a Cooperative Interest filed on or after July 1,
2001 with a Cooperative Addendum, or a financing statement
filed prior to July 1, 2001 which is amended after July 1,
2001 by the filing of a Cooperative Addendum, are effective
for 50 years. Deeds executed by guardians, committees or attorneys in fact in behalf of their respective wards, incompetents or principals, instead of in their names by such representatives should not be deemed an objection to title where the instrument recites the source of authority for the act and the instruments have been properly indexed on the record against the respective infant, incompetent or principal. A. When a limited partnership formed under Article 8 of the Partnership Law takes title to real estate, the failure to commence or to complete the publication required under that Article before title passes to the partnership may be disregarded if the publication is ultimately commenced and complete. B. When a limited partnership formed under Article 8-A of the Partnership Law takes title to real estate, the failure to commence or to complete the publication required under that Article may be disregarded. A mortgage may be disregarded where the mortgage and fee title came into the same ownership of record more than 10 years ago without any recital of non-merger, where such owner is no longer in title and where the chain of title subsequent to the original common ownership of the fee and the mortgage contains no recital of, or reference to, such mortgage. Proof is also to be taken from the last owner that no demand has been made for payment, that no payment has been made of principal or interest, and that such last owner has not acknowledged the debt.
If a foreclosure judgment has not been entered or, if entered, was entered more than six years ago, a receiver has not been appointed or, if appointed, has been discharged by court order, and the mortgage or mechanic's lien has been satisfied prior to the pending transaction, the notice of pendency filed in an action to foreclose the mortgage or mechanics lien may be disregarded. For an unsafe building violation, if the violation for which the notice of pendency was filed is no longer in effect and title has been derived from a conveyance by the City of New York, which acquired title pursuant to an in rem tax foreclosure subsequent to the filing of the notice of pendency, the notice of pendency may be deemed merged and not be an objection to title.
When a Supreme Court Justice in the five counties of New York City or Nassau County designates the New York Law Journal as a paper for publication for the judicial sale of property in such county or where the Surrogate of the five counties of New York City or Nassau County designates the New York Law Journal as a paper for publication of notices under the Surrogate Court Procedure Act for the publication of Surrogate Court citations (with the exception of notices under Section 1801 of the Surrogate Court Procedure Act) publication should be deemed publication in a proper newspaper.
No
objection should be raised to an insured title which has
come through a sheriff's execution sale provided that the
judgment under which the sale was had was obtained by
personal service, by actual delivery to the defendant, there
were no other judgment creditors, no other subordinate liens
at the time of the execution sale, that the owner at the
time of the execution sale was the debtor, and the execution
sale has been properly brought and the purchaser under such
sale or his successor in title is in possession. When a custodian or general guardian holds stock in a corporation for the benefit of an infant and the corporation in liquidation conveys to the custodian or guardian an interest in real property represented by his proportionate share, the custodian or guardian can sell such real estate interest without securing a court order to sell. The same rule is applicable where an administrator or executor of an estate holds stock in a corporation which is liquidated and an interest in real estate replaces stock in the hands of the administrator or executor.
In a title made through a tax sale or through a foreclosure of a tax lien, by an In Rem Proceeding or otherwise, a right of re-entry created 10 years prior to such tax proceeding may be passed even through the taxes in question accrued subsequent to the instrument reserving the right of re-entry and even though the right of re-entry was reserved as a means of enforcing the restrictive covenants. However, the restrictive covenants, as distinguished from the right of re-entry, should not be disregarded. When title to property is made through a recorded tax deed properly describing the property under examination, and 10 years have elapsed since the recording of such deed, the title may be insured without requirement of an action to perfect the tax title, unless it is established that the tax for the year which resulted in the sale was paid before the sale either directly or under another assessment for the same tax.
A
corporate instrument may be passed where no corporate seal
was affixed. A deed from a corporation to a grantee who, from the record, appears to be an officer, director or stockholder of the grantor corporation, or a grantee obviously related to such a person, may be passed without objection when title has reached a purchaser for value.
A. When a deed is dated and recorded before the certificate of incorporation of a grantee is filed in the office of the Secretary of State and a confirmatory deed is obtained from the grantor to the corporation after the filing of the certificate of incorporation, the deed will be passed as sufficient without any requirement for further instruments from the incorporators or stockholders of the grantee or from those who furnished the consideration for the conveyance. B. When a deed is dated before the certificate of incorporation of the grantee is filed in the office of the Secretary of State and the deed is recorded on the same day as the certificate is filed or later, the deed will be passed as sufficient without requirement of proof of delivery or of any confirmatory deeds.
Franchise taxes accrued more than 10 years ago against a
corporation which has been dissolved within the past 10
years may be disregarded, provided the premises in question
has been or is being conveyed to a purchase for value. If
such dissolved corporation is the present owner, proof of
the payment of taxes for the immediately preceding ten years
should be obtained. For corporations that are active,
franchise taxes accruing more than 10 years ago may be
disregarded, provided that title has been or is being
conveyed to a purchaser for value. A conveyance from a corporation to a corporate grantee having interlocking directors or stockholders may be passed without objection when title has been conveyed to a purchaser for value.
When a
corporation has been out of title and the property being
conveyed has been improved for over 10 years, no search need
be made for a certificate of incorporation. D&B-1 DESCRIPTION-DEFECT CAUSED BY CHANGE IN STREET LINES Where there is a defect in the description appearing in a deed which has been on record for 10 years or more and the defect arose by reason of a change in the street line of the street by which the beginning point is monumented or by reason of a change in the street line of the street upon which the property abuts, the title may be insured without requirement of a correction deed, if both of the following conditions exist: A. All subsequent deeds on record for 10 years or more correctly describe the property with reference to the changed street lines; and
B. The
property has been improved for 10 years or more, and the
grantor in the described deed owned no other property
abutting the misdescribed property.
A. When
an instrument purports to convey or mortgage all of the
interest of an Owner but the instrument contains a recital
that the property is the same as that described in (as
distinguished from conveyed by) a previous instrument which
conveyed or mortgaged only a fractional interest, the
recital should be disregarded and the instrument passed as
conveying or mortgaging the entire interest of the owner.
Where
there is a gore of less than 1 inch between 2 lots,
contiguity between the 2 lots will nevertheless be insured
unless there is an express reservation to the land in the
gore or unless there is pending litigation over title to the
gore. A. When the distances and dimensions given for 2 or more plots would make them contiguous except for the fact that the point of beginning in 1 or more of the descriptions is located opposite the center of a party wall, the monumentation may be disregarded and contiguity may be insured when the properties come into a common ownership provided that the gap between the point opposite the center of the party wall and the line determined by the distance is 3 inches or less. B. When the point of beginning is described as being "at" the center of the party wall (as distinguished from "opposite") and the front of the party wall is set back from the street line at least 2 feet, the attempted location at the center of the party wall may be disregarded entirely as a monument even if the gap is more than 3 inches. C. Where a common owner conveyed buildings separately monumenting some plots as opposite the center of a party wall, the monumentation may be disregarded for the purpose of insuring contiguity where the sum of the dimensions used in the conveyances totals all the property originally held by the common owner. D. Where a grantor conveys premises monumenting the same as opposite the center of a party wall, such monumentation may be disregarded for the purpose of insuring contiguity where the dimensions used in the conveyance would otherwise convey all the property of the grantor.
Where a reciprocal driveway easement is in actual use by adjoining owners and the reciprocal easement is affirmatively recited in deeds of record on both sides for at least the past 10 years, and not subordinate to any mortgage, the reciprocal easement may be insured and any defect in its creation by the common owner disregarded.
A
variation between a record description and a tax map of up
to 1 inch may be disregarded. E-I ADMINISTRATOR'S DEED-ADDITIONAL BOND A deed made by an administrator of a decedent, to whom unrestricted letters have been issued, may be insured without compliance with SCPA 805 (3) if acknowledged waivers of citation, renunciation and consent to the appointment of the Administrator executed by all of the distributees, reciting that the filing of a bond is not required, were filed with the Surrogate prior to the issuance of the letters. A. The lien for Federal Estate Tax may be disregarded when the federal gross estate of a decedent is as follows: for decedents dying between January 1, 1986 and December 31, 1997 a gross estate of not more than $600,000; for a decedent dying in 1998 a gross estate of not more than $625,000; for a decedent dying in 1999 a gross estate of not more than $650,000; for decedents dying in 2000 or 2001 a gross estate of not more than $675,000; for decedents dying in 2002 or 2003 a gross estate of not more than $1,000,000; for decedent's dying in 2004 or 2005 a gross estate of not more than $1,500,000; for decedents dying in 2006, 2007 or 2008 a gross estate of not more than $2,000,000; and for decedents dying in 2009 a gross estate of not more than $3,500,000. B. The lien for Federal Estate Tax against a deceased tenant by the entirety or a deceased joint tenant may be disregarded on a deed from the surviving tenant by the entirety or the surviving joint tenant to a purchaser who pays adequate and full consideration. C. The lien for Federal Estate Tax against a deceased tenant by the entirety or deceased joint tenant may be disregarded upon a mortgage for adequate and full consideration from the surviving tenant by the entirety or the surviving joint tenant. D. The lien for Federal Estate Tax against a decedent may be disregarded upon a mortgage for value or a transfer made to a purchaser for value which transfer or mortgage is made by the heirs, devisees or distributees of the decedent.
E. Where
in an action party defendants are included as unknowns in an
omnibus clause, no question will be raised as to possible
Federal Estate Tax against the estates of any such unknowns
who may be dead and the United States Government need not be
named a party for purpose of cutting off such possible
Federal Estate Tax. The United States Government is to be
named as a party defendant for any other proper reason which
may exist in the title. A. DEATH OF DECEDENT PRIOR TO MARCH 1, 1964 1) When decedent died prior to March 1, 1964 and title is through a surviving spouse who claims the entire title under subdivisions 2 and 3 of Section 83 of the Decedent Estate Law because the estate was less than $5,000 deeds should be obtained from the surviving parents or parent, or where title is made through a spouse who claims the entire title under subdivision 4 because the estate was less than $10,000, deeds should be obtained from the surviving brothers and sisters or their descendants. However the requirement for such deeds will be waived if title is made through a proceeding in the Surrogate's Court by an administrator for leave to sell the property or an accounting proceeding or a proceeding for probate of heirship or other appropriate action or proceeding properly conducted and such parents or collaterals are joined as parties and an appropriate finding is made that the value of the estate is below the required amount. 2) The title from the surviving spouse of an intestate may be passed without requiring deeds from the parents or collaterals and without requiring any of the foregoing proceedings or actions if proof is furnished of all three of the following: a) The estate was below the amount required to give the spouse the entire title; this may be established either by the estate tax proceeding or by affidavit; and b) The property had been improved for more than 10 years; and c) The deed from the surviving spouse or from his or her heirs, devisees or successors in interest had been recorded for more than 10 years.
1) When decedent died on or after March 1, 1964 and title is through a surviving spouse who claims the entire title under subdivisions 2 and 3 of Section 83 of the Decedent Estate Law or under paragraphs 3 and 4 of subdivision (a) of Section 4-1.1 of the Estates, Powers and Trusts Law (as said paragraph existed prior to September 1, 1992) because the estate was less than $25,000, deeds should be obtained from the surviving parents or parent. However such deeds should be waived if title is made through a proceeding in the Surrogate's Court by an administrator for leave to sell the property or an accounting proceeding or a proceeding for probate of heirship or other appropriate action or proceeding is properly conducted and such parents are joined as parties and an appropriate finding is made that the value of the estate is below the required amount. NOTE: The Following Did Not Take Effect Until March 1, 1974: 2) The title from the surviving spouse of an intestate may be passed without requiring deeds from the parents and without requiring any of the foregoing proceedings or actions if proof is furnished of all the following: a) The estate was below the amount required to give the spouse the entire title; this may be established either by the estate tax proceeding or by affidavit, and b) The property had been improved for more than 10 years, and c) The deed from the surviving spouse or from his or her heirs, devisees or successors in interest had been recorded for more than ten years.
When decedent died on or after September 1, 1992, and title is through a surviving spouse who claims the entire title under Article 4 of the Estates Powers and Trusts Law, deeds do not have to be obtained from the surviving parents or parent.
A. The lien for New York Estate Tax may be passed where the decedent died a resident of New York State (i) prior to June 9, 1994 and the federal gross estate, including the subject real property, is not more than $108,333; (ii) on or after June 9, 1994 and on or prior to September 30, 1998, and the federal gross estate, including the subject real property, is not more than $115,000; (iii) on or after October 1, 1998 and on or prior to January 31, 2000 and the federal gross estate, including the subject real property, is not more than $300,000; (iv) on or after February 1, 2000 and on or prior to December 31, 2001 and the federal gross estate, including the subject property, is not more than $675,000; or (v) on or after January 1, 2002 and on or prior to December 31, 2009 and the federal gross estate, including the subject property, is not more than $1,000,000. B. The lien for New York Estate Tax against a deceased tenant by the entirety or joint tenant may be disregarded on a deed from the surviving tenant by the entirety or joint tenant to a bona fide purchaser for adequate and full consideration. C. Where death occurs after May 25, 1990, the lien for New York Estate Tax against a deceased tenant by the entirety or deceased joint tenant may also be disregarded upon a mortgage for adequate and full consideration from the surviving tenant by the entirety or the surviving joint tenant. D. Where death occurs after May 25, 1990, the lien for New York Estate Tax may also be disregarded against an interest in property held by the decedent and the decedent's surviving spouse as tenants by the entirety. E. The lien for New York Estate Tax against a decedent may be disregarded upon a mortgage for value or a transfer made to a purchaser for value which transfer or mortgage is made by the heirs, devisees or distributes of the decedent.
A. Prior to September 1, 1967: Where a decedent dies in a State other than New York State, owning real property in New York State, and his will is probated in such foreign state and an ancillary probate is had in New York State, the foreign executor may act in New York State pursuant to a power of sale granted in the will without obtaining Ancillary Letters in New York, unless precluded by Section 131 of the Banking Law.
B. After
September 1, 1967: Where a decedent dies in a State other
than New York State, owning real property in New York State,
and his will is probated in such foreign state, either an
ancillary or original probate of the will must be completed
in New York State and ancillary Letters must be issued to
the foreign executor before exercising in New York State a
power of sale granted in the will. A. When title is made through a will and the estate is out of title and the petition for probate, through not made by a blood relative of the decedent, shows that the heirs are direct descendants or brothers and sisters, the title will be insured without exception as to the sufficiency of such proof. B. If under the same circumstances the petition shows that the heirs include nephews or nieces or more remote relatives, the title will nevertheless be insured without exception as to the sufficiency of such proof if 5 years have elapsed since the probate of the will. C. Proof of Heirship on Probate - Where title is presently being made through a will and the petition is made for probate by the surviving spouse, who has had children with the decedent, the title will be insured without further proof of heirship, provided that the decedent had not had a prior marriage and satisfactory proof of that fact is furnished. When a deed from the heirs of a former owner who died intestate has been recorded for more than 10 years, and the only proof that such grantors are the only heirs are contained in a petition for letters of administration made by one who was not a blood relative of the decedent, the title will be insured without any exception as to the sufficiency of such proof.
A. When a deed from the heirs of a deceased former owner who died intestate or the surviving tenant by the entirety or joint tenant of a deceased former owner has been recorded more than 10 years, and the only proof that such grantor(s) are the surviving tenant by the entirety or joint tenant or the only heirs is contained in a statement in the transfer or estate tax petition or application for release of lien by a qualified person or (pursuant to Real Property Actions and Proceedings Law Section 341) in a recital contained in a duly acknowledged deed or mortgage or other instrument executed for the purpose of transferring title which is more than 10 years old to the effect that he/she is the surviving spouse or joint tenant or the only persons interested in the estate of the decedent, the title will be insured without exception as to the sufficiency of such proof.
B. A
recorded release of New York Estate Tax may also be accepted
as proof of death of a deceased joint tenant or tenancy by
the entirety. E-10 PROOF OF PAYMENT OF LEGACIES Legacies whether expressly or impliedly charged on the real property of a decedent may be disregarded after 10 years from the date of death of the decedent if the estate has passed out of title.
Title
made through sales by public administrators may be insured,
if otherwise valid, despite the fact that no bond has been
filed in the proceeding for the sale of the particular
parcel and despite the fact that no bank has been designated
in the order as the depository of the proceeds of sale. If a person died intestate on or after June 1, 1965, title made through a sale made by a Public Administrator, acting as administrator of the estate under Section 11-1.1 of the Estates, Powers and Trust Law, may be insured without requiring the filing of an additional bond unless the court so requires. A. A notice of Federal Tax Lien based on an assessment made, on or before November 5, 1990 may be disregarded upon the execution and delivery of a deed, lease or mortgage affecting the property of the taxpayer to a Purchaser (as defined in Section 6323 of the Internal Revenue Code) or a Mortgagee after 6 years and 30 days have elapsed from the date of assessment set forth in the notice of Federal Tax Lien, unless the notice of Federal Tax Lien was refiled prior to the expiration of the 6 year and 30 days period. If the notice of Federal Tax Lien was refiled within the 6 year and 30 day period from the date of assessment, the notice of Federal Tax Lien may be disregarded after 10 years and 30 days have elapsed from the date of assessment set forth in the notice of Federal Tax Lien unless the notice of Federal Tax Lien was further refiled. B. Federal Tax liens against one of the parties holding title as tenants by the entirety may be passed when title passes from the other tenant as a survivor following the death of his or her spouse. The lien will not be passed when both tenants by the entirety are alive.
Where
between the time of a bona fide closing and the time of
recording of the insured mortgage, a Federal Tax Lien is
filed against a mortgagor, the Federal Tax Lien will be
passed upon proof establishing the actual closing date and,
if there is a delay between the date of the mortgage or
mortgages and the recording thereof, the reason for the
delay in recordation. A. Where title is in a limited partnership or limited liability partnership duly formed, which is about to convey or mortgage property, judgment searches need not be run against general or limited partners and judgment liens against them may be disregarded.
B. When
title is taken in the trade name of a general partnership in
accordance with its named designation in the certificate of
partnership which is properly filed, judgment searches need
not be run against general or limited partners and judgment
liens against them may be disregarded. A. Parking Violation Bureau Judgments: 8 years (N.Y. Vehicle and Traffic Law Section 241 (3) ) B. Environmental Control Board Judgments: 8 years (NYC Charter Ch. 57 Section 1404) C. Transit Adjudication Bureau Judgments: 10 years N.Y. Public Authority Law Section 1209-A; 1984 N.Y. Laws Ch.93)
Where real property is sold and conveyed, and at the same time a mortgage thereupon is given by the purchaser to secure the payment of the whole or a part of the purchase money, the lien of the mortgage upon that real property is superior to the lien of a previous money judgment against the purchase money mortgagor. This may be followed whether the mortgage is made directly to the grantor or to a third party, so long as the mortgage recites that it is a purchase money mortgage.
A Surety Bond Lien may be disregarded after 10 years from the date of filing provided that such lien was not extended by court order and such extension noted in the record where the Surety Bond Lien is filed.
When a judgment has been rendered in favor of an Agency of the State or a Municipality other than the Industrial Commissioner of the State of New York, it will be adequate to join the State of New York or such Municipality without joining the Agency as a party defendant provided that appropriate recitals are contained in the complaint giving the reason for joinder as a Commissioner, agency, or municipality.
Exception need not be taken to a publication of a public sale of realty or interest therein under any order, judgment or decree of any court of the United States provided it has been made in accordance with the Federal Statue (28 U.S. Code Sec. 2002) that reads as follows: "A public sale of realty or interest therein under any order, judgment or decree of any court of the United States shall not be made without notice published once a week for at least four weeks prior to the sale in at least one newspaper regularly issued and of general circulation in the county, state of judicial district of the United States wherein the realty is situated." "If such realty is situated in more than one county, state, district or circuit, such notice shall be published in one or more of the counties, states, or districts wherein it is situated, as the court directs. The notice shall be substantially in such form and contain such description of the property by reference or otherwise as the court approves. The court may direct that the publication be made in other newspapers." "This section shall not apply to sales and proceedings under Title 11 or by receivers or conservators of banks appointed by the Comptroller of the Currency."
When the holder of a junior lien dies intestate and no proceedings have been had in his or her estate for the appointment of an administrator, the lien will be deemed barred in an action to foreclose a prior mortgage if all the next of kin have been made parties and satisfactory proof is furnished of the death, the intestacy, the family history and the absence of creditors of the estate. In such situations the lack of proof that there were no creditors may be disregarded when more that 6 years have elapsed since the delivery of the referee's deed.
When a judgment, subsequent in lien to a mortgage being foreclosed and docketed prior to the filing of a notice of pendency, or a judgment docketed subsequent to the filing of a notice of pendency, is assigned to the United States of America after the filing of the notice of pendency in an action to foreclose such mortgage, then such assignment may be disregarded provided the record holder of such judgment filed prior to the notice of pendency, is properly joined and served as a party defendant, all necessary papers are served on such party, and the action goes to judgment and sale.
A mortgage secured by property improved by a one-to-six family, owner occupied, residential structure or residential condominium unit may be disregarded without the recording of a Satisfaction of Mortgage provided there has been compliance with RPAPL Section 1921.
When the premises affected by a mortgage lien is released of record instead of the mortgage being satisfied, the mortgage may be omitted as an objection to title. A. A mortgage in the face amount of $25,000 or less which matured more than 12 years ago and which is not recited in the chain of title for 12 years or more, may be disregarded upon an affidavit that there has been no payment or demand for payment of principal or interest for 12 years, provided that the present owner or his or her ancestor was not the mortgagor and there has been one or more transfers of title for value. B. A mortgage in the face amount of $25,000 or less which contains no stated maturity date, which has been recorded for more than 30 years, and which is not recited in the chain of title for 12 years or more, may be disregarded upon an affidavit there has been no payment or demand for payment of principal or interest for 12 years, provided that the present owner or his or her ancestor was not the mortgagor and there has been one or more transfers of title for value. Recital of an unrecorded mortgage in a deed of record for 20 years or more may be passed on proof that there has been no payment or demand for payment of principal or interest for 12 years, and that the owners have had no knowledge of said unrecorded mortgage. Where such recital is contained in the last deed of record satisfactory proof will be required to dispose of the objection. |