Kings County Foreclosure Actions

Effective May 3, 2006, the rules for Kings County foreclosure actions have been amended. The referee appointed in the action can only transfer title to the successful bidder as there is now a prohibition on assignments of bids.

Additionally, the any closing of title that takes place between 45 and 90 days after the sale requires a stipulation signed by all parties including the referee. Any closing that takes place more than 90 days after the sale must be approved by the Court. The revised forms for order of reference and judgment of foreclosure and sale are annexed hereto.

For revised form Click Here

Limited Liability Companies

Recent amendments of the limited liability company laws have been enacted in Chapter 767 of the Laws of 2006. This law amends the publication requirements for LLC's as the articles of formation must now be published once a week for six successive weeks in two newspapers, 1 weekly and 1 daily, in the county in which the office of the entity is intended to be located.  The publication must set forth the principal place of business.  Affidavits of publication filed with the New York Department of State must be accompanied by a certification of publication of the entity.

If the LLC is formed on or after June 1, 2006, it must publish its articles of formation and filed its affidavit of publication with the State within 120 days of the date of its formation. If these requirements are not met, the authority to conduct or transact business in New York is suspended until there is substantial compliance.

However, even if there is non compliance, the validity of the entity's contract or acts or its rights to defend any action brought against it in New York State remains unimpaired.

If the LLC was formed prior to June 1, 2006 and it complied with the publication requirement in effect when it was formed, it is not required to comply with the new requirements. If the LLC was formed prior to June 1, 2006 and it did not publish, it has 12 months after June 1, 2006 to comply with the new publication and filing requirements.

If the LLC was formed prior to January 1, 1999, it is deemed to be in compliance without any affidavit of publication.

In the event that the LLC does not publish within the statutory period, each member shall be personally and fully liable, jointly and severally, with such entity and with each member for all debts, obligations and liabilities or such entity incurred or arising at any time after June 1, 2006.

TIRSA Rate Manual Amendments

As of February 15, 2006, the title premium for a refinancing of an existing mortgage or a subordinate mortgage has been amended to reflect a rate of 50% of the filed mortgage premium up to $475,000. This sum has been increased form the amount of $250,000.

No proof of prior insurance is required to afford such a discounted rate as proof may be obtained from review of the public records.

New York City Recordings - "Part of a lot"

The New York City Register has advised that it will no longer accept deeds for recording which convey part of a lot without completion of a tax lot subdivision. The process and the forms required to subdivide a tax lot are located at http://nyc.gov/html/dof/html/pub/pub property lots.html.

A mortgage, lease or easement can be recorded without there being a prior tax lot subdivision. Also, a deed to air space above a horizontal plane will be accepted as well without a prior tax lot subdivision.

This requirement does not apply when the City of New York is the grantor of a deed to a part of a tax lot, or when the City surveyor requires the deed to be recorded before a tax lot subdivision is approved.

If the deed and ACRIS forms do not state it is for part of a lot, then the deed will be accepted for recording.