News: Brokerage

Supreme Court calls real property tax foreclosure into question - by Gabriella Botticelli

Gabriella Botticelli

A recent United States Supreme Court opinion has significant impact on New York’s Real Property Tax Law. Tyler v. Hennepin County, Minnesota, decided on May 25, 2023, ruled it unconstitutional for a taxing authority to foreclose upon and sell property based upon a failure to pay taxes without a procedure for the property owner to recover any surplus from the sale. In Tyler, the county took possession of a condo based on a $15,000 tax delinquency. The county sold the condo for $40,000, keeping the $25,000 surplus. The court ruled that the county’s retention of the surplus violated the Constitution’s Takings Clause.

New York’s Real Property Tax Law (“RPTL”) § 1136 raises similar concerns. Per RPTL § 1136, when a taxing authority seeks judgment to foreclose a tax lien and no answer has been interposed, or the court has determined the answer is not meritorious, the court shall award judgment to the tax district which “shall contain a direction to the enforcing officer” to “execute and cause to be recorded a deed conveying to such tax district full and complete title to such parcel.” See RPTL § 1136(3); see also RPTL § 1136(2)(a). Some New York counties take advantage of this statute to take possession of delinquent properties, sell them for more than the sums owed for taxes, and keep the surplus. In response to Tyler, there is legislation pending to change the RPTL to impose a moratorium on tax foreclosure until the state can amend its laws to comply with Tyler and allow property owners to recover any surplus that may result from a tax lien sale.

If you are at risk of losing your property through a tax lien foreclosure, contact an attorney to ensure your rights are protected.

Gabriella Botticelli is an attorney and a member of the firm’s litigation practice group at Forchelli Deegan Terrana LLP, Uniondale, N.Y. 

READ ON THE GO
DIGITAL EDITIONS
Subscribe
Columns and Thought Leadership
Tri-state capital  migrates nationally amid  regulation pressure - by Reese Weaver

Tri-state capital migrates nationally amid regulation pressure - by Reese Weaver

New York tri-state multifamily investors are increasingly reallocating capital to less-regulated markets across the U.S. as rent control and legislative risk erode returns at home. With over 60% of New York City’s rental housing stock classified as rent-stabilized, the traditional value-add model — buying under-performing buildings,

The death of the generic offering memorandum: What buyers expect in 2025 - by Kimberly Zar Bloorian

The death of the generic offering memorandum: What buyers expect in 2025 - by Kimberly Zar Bloorian

There was a time when an offering memorandum (OM) was pretty bare bones, some photos, a few bullet points on income, and a rent roll thrown in at the back. That used to get the job done. Not anymore. In 2025, buyers are sharper, faster, and more selective. They’re looking
The anticipated effect of Basel III and ISO 20022 implementation on commercial real estate - by Michael Zysman

The anticipated effect of Basel III and ISO 20022 implementation on commercial real estate - by Michael Zysman

July 1, 2025 is the deadline for US banks to begin to adopt Basel III banking standards and July 14, 2025 is the deadline for U.S. banks to adopt ISO 20022 messaging standards. Both will have a significant effect on the banking and commercial real estate (CRE) finance sectors.
A fresh start - by Shallini Mehra and Amit Doshi

A fresh start - by Shallini Mehra and Amit Doshi

For the past several years, the New York City multifamily housing market has been defined by disruption. The combined impact of the HSTPA rent laws and a sharply higher interest rate environment has fundamentally reduced