Legal Question in Real Estate Law in New York

Lien on Property

Lawyer advised that there were no liens or judgements on a inherited home jointly owned by two brothers . Made $28,000 in improvements and placed for sale. Four months later (2 days prior closing)lawyer advised the title company would not transfer title as there was a 10 year old lien on the property resulting from a 180,000 judgement against one of the brothers.

1. Is the lawyer liable for any costs e.g. loss of sale or reduced price as a result of bad information.

2. Can the party with the judgement take more than 1/2 of the shared net proceeds i.e. funds from the brother without the judgement against him?

Thank you


Asked on 10/01/03, 7:19 am

3 Answers from Attorneys

Seth Kaufman Seth M. Kaufman

Re: Lien on Property

I need to see all of the relevant documents, including the continued title report, to assess your case. However, you probably have no claim against the attorney. Even if he gave you a formal opinion as to title, the lien should have come as no surprise to the judgment debtor. You say that the judgment lien is ten years old - if, in fact, the judgment was docketed more than ten years ago, and not renewed since, it is no longer a lien on the property and the title company should omit it. If I understand your second question correctly, the answer is no - if the property were sold, the joint tenancy would become a tenancy-in-common and any judgment lien against a co-owner only extends to his interest. Feel free to call me to discuss. I do not charge a fee for the initial consultation.

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Answered on 10/01/03, 9:21 am
Daniel Clement Law Offices of Daniel Clement

Re: Lien on Property

There is a possibility you have a claim against the lawyer or the title company.

Daniel Clement

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Answered on 10/01/03, 12:05 pm
Walter LeVine Walter D. LeVine, Esq.

Re: Lien on Property

I disagree with Mr. Kaufman's response in several areas, but you should confer with a local real estate attorney and the local bar association ethics committee as to lawyer's responsibility. The attorney was correct that there were no liens against the decedent, but should have also run a judgment search on the inheritors as well. If the judgment was noted, possible alternatives could have been used to prevent the lien from attaching to the property (e.g., a disclaimer of the interest). Since the brother against whom the judgment was recorded should have known about it, this may be a defense to a malpractice claim. There may be defenses to the claim that should be explored as well. Traditionally a judgment last 20 years from date of entry, but this could vary from state to state. This need to be checked as to your state, to determine its life and if not renewed, title company exception. Finally, all that the creditor can reach is the interest of the debtor. If only one-half, they cannot get more than one-half of value. This may be the subject of negotiations with the creditor and should be explored.

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Answered on 10/01/03, 12:15 pm


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