Real Property Law Section Blog

Under Civil Practice Law and Rules ("CPLR") Section 5203 ("Priorities and liens upon real property"), a judgment is a lien for ten years on real property of the debtor in the county in which the judgment is docketed. The judgment may be renewed for an additional ten years pursuant to CPLR Section 5014 ("Action upon judgment"), which provides that "[a]n action may be commenced…during the year prior to the expiration of ten years since the first docketing of the judgment. The judgment in such an action shall be designated a renewal judgment. The lien of a renewal judgment shall take effect upon the expiration of ten years from the first docketing of the original judgment".

In a case decided by the New York State Court of Appeals on May 12, 2009, the Plaintiff's judgment was docketed in New York County on October 23, 1991. Before the ten year lien period expired, the judgment creditor brought an action to obtain a renewal judgment. An Order renewing the judgment nunc pro tunc dated as of October 23, 2001 was docketed in 2005. In 2003, however, after the ten year lien period for the judgment had run and before the renewal judgment was docketed, the judgment debtor executed two mortgages on a condominium unit he owned in Manhattan. The mortgagees sought an order either vacating the nunc pro tunc treatment of the renewal judgment or declaring that the liens of their mortgages were prior to the lien of the renewal judgment.

The Supreme Court, New York County, in a decision reported at 2007 WL 2119748, denied the mortgagees' petition. The Appellate Division, in a decision reported at 854 N.Y.S. 2d 10, reversing the Order of the lower court, granted the petition, held that the renewal judgment was entered as of the date it was granted, and declared that the liens of the mortgages were prior to the judgment. The Court of Appeals affirmed the decision of the Appellate Division. "Because CPLR 5014 does not provide for a renewal judgment to have retroactive effect to the original lien's expiration date and because nunc pro tunc treatment is inappropriate where, as here, additional lenders relying on the public record acquired rights in the property, we hold that the renewal lien becomes effective when granted by the Supreme Court". The Court of Appeals decision in Gletzer v. Harris is reported at 2009 WL 1285970.

The New York City Real Property Transfer Tax Return has been revised effective June 8, 2009 to add a new Schedule "I", captioned "Transfers Pursuant To A Separation Agreement, Marital Settlement Agreement Or Divorce Decree". According to an announcement posted on the Department of Finance's website, at http://nyc.gov/html/dof/html/jump/acris.shtml:

"Changes to the E-Tax application Real Property Transfer Tax Return (RPT) section Effective June 8, 2009

"Starting June 8, 2009 ACRIS customers that use the E-Tax application will see a new schedule in the Real Property Transfer Tax Return (RPT) section. The new schedule, Schedule I, will be required if the Condition of Transfer is "Transfer pursuant to marital settlement agreement or divorce decree". If the Condition of Transfer is “Other”, the new schedule will be optional. For all other Conditions of Transfer, the new schedule will not be displayed. The Schedule I will be grouped together with other Alpha schedules and will be placed between Schedule H and M".