Electronic Notarization Extended until September 4, 2020

On August 5, 2020, Governor Cuomo signed Executive Order 202.55, as amended by Executive Order 202.55.1, which extends previous executive orders related to the coronavirus pandemic. Remote notarization is extended to September 4, 2020. Notary Publics are reminded of the rules stated in Executive Order 202.7 which we wrote about HERE.

Mortgage Lender Warning - No Consideration Deed

The Appellate Division recently reminded us of the importance of investigating a no consideration deed prior to issuing a mortgage to the titleholder. 

In 2386 Hempstead, Inc. v. 182 St., Inc., the Appellate Division held that the no consideration deed constituted notice of a potential previous fraud in the title spurring a duty to make inquiry concerning the circumstances of the transaction at issue. 

By failing to make such inquiry, the lender lost its status as a bona fide encumbrancer for value and therefore, jeopardized its status as a prior lienholder, who gets paid first in a foreclosure action. 

Statute of Limitations Tolled until September 4, 2020

On August 5, 2020, Governor Cuomo signed Executive Order 202.55 which extends the tolling of statute of limitations to September 4, 2020. The tolling period was previously extended to August 5, 2020 by Executive Order 202.48. As a reminder, the Executive Orders do not toll all deadlines in pending and ongoing actions.

Title Litigation - Resolving a Boundary Line Dispute

The Appellate Division recently reminded us how the courts make a boundary line dispute determination in the case of Old Timers Rod & Gun Club, Inc. v. Wa-A-We Rod and gun Club, Inc. with the following quote:

Where such discrepancies exist in property descriptions, ‘the rules of construction require that resort be had first to natural objects, second to artificial objects, third to adjacent boundaries, fourth to courses and distances and last to quantity’

We are therefore reminded of the importance of locating monuments referenced in a deed rather than simply relying on compass bearings and distances when resolving boundary line disputes. 

Title Insurance - Read Your Policy Before You Sue Your Insurer to Take Action

I want it; I want it; I want it is not a good enough argument said the Appellate Division in Irma Straus Realty Corp. v. Old Republic National Title Insurance Company. 

Underlying the demand for action was a dispute between neighbors over use of a common stairwell. Plaintiff sued their insurer demanding that the title company pay attorneys' fees and costs to prosecute an ownership action against the neighbor. 

Plaintiff's suit was pursuant to section 5 (b) of its policy, which provides that the title insurer “shall have the right ... to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the Title, as insured, or to prevent or reduce loss or damage to the Insured."

Clearly, as the court points out, Plaintiff didn't understand the difference between the terms "right," which the policy stated, and "obligation," which the policy didn't state.

That is to say, the Plaintiff lost the case. 

Clearly, words matter.