NYLE Real Property Law 4 — Questions and Answers
Question 1: A purchaser of New York real property discovers a prior unrecorded deed in the chain of title only after closing. Under the recording act, the purchaser is protected if they:
- Had no actual or constructive notice and recorded first (Correct answer)
- Simply closed escrow before the prior grantee
- Obtained title insurance covering the prior deed
- Recorded within 30 days of the prior deed's execution
Correct answer: Had no actual or constructive notice and recorded first
New York's race-notice recording statute protects a bona fide purchaser for value who takes without notice and records before the prior claimant.
Question 2: Under New York law, a landlord's failure to maintain a residential rental unit in habitable condition may give the tenant the right to:
- Unilaterally terminate the lease without notice
- Withhold rent or repair-and-deduct up to one month's rent (Correct answer)
- Sue for treble damages automatically
- Remain rent-free for the duration of the lease
Correct answer: Withhold rent or repair-and-deduct up to one month's rent
New York recognizes the implied warranty of habitability (RPL § 235-b), allowing tenants to withhold rent or make repairs and deduct costs for landlord's breach.
Question 3: Which of the following is NOT a method by which an easement can be terminated in New York?
- Release by the easement holder
- Merger of the dominant and servient estates
- Non-use for 10 years (Correct answer)
- Abandonment evidenced by intent and conduct
Correct answer: Non-use for 10 years
In New York, mere non-use of an easement does not extinguish it; termination requires abandonment (non-use plus intent to abandon) or another recognized method.
Question 4: Under New York's mortgage foreclosure law, a judicial foreclosure sale must be confirmed by:
- The State Attorney General's office
- The court that issued the foreclosure judgment (Correct answer)
- The county recorder of deeds
- The New York State Banking Department
Correct answer: The court that issued the foreclosure judgment
New York requires judicial foreclosure, and the court retains jurisdiction to confirm (or refuse to confirm) the foreclosure sale to protect against unconscionably low bids.
Question 5: A deed restriction prohibits the use of land for commercial purposes. If a subsequent owner uses the land commercially, the prior owner's remedy under New York equity is:
- An action for breach of the covenant only
- An injunction to enforce the equitable servitude (Correct answer)
- A quiet title action
- Rescission of the original deed
Correct answer: An injunction to enforce the equitable servitude
An equitable servitude (restrictive covenant enforceable in equity) allows the original covenantee or successors to seek injunctive relief against violating owners.
Question 6: In New York, which party typically bears the risk of loss if a property is destroyed by fire after contract signing but before closing, absent a contrary agreement?
- The seller, because they still hold legal title
- The buyer, under the doctrine of equitable conversion (Correct answer)
- The party in possession of the property
- Split equally between buyer and seller
Correct answer: The buyer, under the doctrine of equitable conversion
Under the doctrine of equitable conversion, once the contract is signed the buyer holds equitable title and bears the risk of loss, unless the contract provides otherwise.
Question 7: Under New York law, a mechanic's lien filed by a contractor must generally be enforced by commencing a foreclosure action within:
- 6 months of filing
- 1 year of filing (Correct answer)
- 2 years of filing
- 3 years of filing
Correct answer: 1 year of filing
New York's Lien Law requires a mechanic's lien claimant to commence a foreclosure action within one year of filing the notice of lien, or the lien is extinguished.
NYLE Real Property Law 4
A purchaser of New York real property discovers a prior unrecorded deed in the chain of title only after closing.
Under the recording act, the purchaser is protected if they: