Spring has finally arrived and along with improved weather conditions we are seeing some improvement in both commercial and residential transaction volume. Lets hope both trends continue.
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I hope that you find this issue's subject matter informative. As always, please feel free to contact me with any request for future topics.
- Anthony Chiellino, President
Enforcing Money Judgments vs. a Cooperative Unit & Article 52 of the CPLR
|Generally speaking, it is not difficult to distinguish between real property and personal property. However, in New York, this distinction is important when it comes to the enforcement of money judgments against an interest in a Cooperative Unit.
New York is unique for a lot of reasons-the cooperative form of ownership of property is one example. An interest in a Cooperative Unit is an interest in personal property. This classification as to the interest in a Cooperative Unit as personalty versus realty is important when enforcing a money judgment vs a Cooperative Unit. The method whereby a judgment debtor obtains a lien (money judgment) on property, or a priority in it, differs and differs substantially depending on whether the property is classified as real property or personal property. If the interest is real property, a lien is secured by the mere docketing of the judgment in the office of the county clerk of the county in which the real property is located (CPLR 5203). If the interest is personal property, no lien is obtained on mere docketing. A lien on personal property does not arise until an execution is delivered to the proper sheriff.
In this issue, we will examine enforcing money judgments against an interest in a Cooperative Unit. We will address Federal Tax Liens and New York State Tax Warrants in a later issue. In reviewing this article, it is important to remember that one of the benefits of obtaining title insurance for the sale/purchase and/or loan involving a Cooperative Unit is the added layer of protection it affords in dealing with possible money judgments vs an interest in a Cooperative Unit.
If you have any questions or would like further information regarding any of the articles in this newsletter, please contact Michael Alfieri, Esq. at (212) 651-1200 or [email protected].
Also, if there are any topics that you would like us to include in future newsletters, please feel free to e-mail us with suggestions at [email protected].