§ 294 — Recording executory contracts and powers of attorney

New York § 294

• Jurisdiction: New York
• Law RPP: Real Property
• Art. 9: Recording Instruments Affecting Real Property

Text

§ 294. Recording executory contracts and powers of attorney. 1. An\nexecutory contract for the sale, purchase or exchange of real property,\nor an instrument canceling such a contract, or an instrument containing\na power to convey real property, as the agent or attorney for the owner\nof the property, acknowledged or proved, and certified, in the manner to\nentitle a conveyance to be recorded, may be recorded in the office of\nthe recording officer of any county in which any of the real property to\nwhich it relates is situated, and such recording officer shall, upon the\nrequest of any party, on tender of the lawful fees therefor, record the\nsame in his said office.\n 2. In lieu of the recording of an executory contract, there may be\nrecorded a memorandum thereof, executed by the parties, and acknowledged\nor proved, and certified, in the manner to entitle a conveyance to be\nrecorded, containing at least the following information with respect to\nthe contract: the names of the parties to the contract, the time fixed\nby the contract for the conveyance of title, and a description of the\nproperty. The executory contract shall be deemed duly recorded upon the\nrecording of a memorandum in conformity with this subdivision.\n If the purchaser is entitled to possession of the property under the\nterms of the contract, the memorandum must so state. The provisions of\narticle eleven of the tax law shall not be applicable to an executory\ncontract for the sale, purchase or exchange of real property, or\nmemorandum thereof, unless the contract provides that the purchaser is\nentitled to possession of the property.\n 3. Every executory contract for the sale, purchase or exchange of real\nproperty not recorded as provided in this section shall be void as\nagainst any person who subsequently purchases or acquires by exchange or\ncontracts to purchase or acquire by exchange, the same real property or\nany portion thereof, or acquires by assignment the rent to accrue\ntherefrom as provided in section two hundred ninety-four-a of the real\nproperty law, in good faith and for a valuable consideration, from the\nsame vendor or assignor, his distributees or devisees, and whose\nconveyance, contract or assignment is first duly recorded, and shall be\nvoid as against the lien upon the same real property or any portion\nthereof arising from payments made upon the execution of or pursuant to\nthe terms of a contract with the same vendor, his distributees or\ndevisees, if such contract is made in good faith and is first duly\nrecorded.\n 4. (a) Where an executory contract is duly recorded as provided in\nthis section the right of the purchaser to performance of the contract\nis enforceable against a person who, subsequent to the recording and\nwhile the recording is effective as provided in this section, purchases\nor acquires by exchange the same real property or any part thereof, from\nthe same vendor, his distributees or devisees.\n (b) If the recorded contract provides for payments made or to be made\nby the purchaser before conveyance of title, including payments made at\nthe execution of the contract, or if the recorded memorandum states that\nthe contract so provides, the lien of the purchaser arising from any\nsuch payments actually made is enforceable against any such person\ndescribed in paragraph (a) to the extent of such payments, not exceeding\nthe total amount specified in the recorded contract or memorandum, and\nis so enforceable without regard to any notice of the estate or interest\nof such person.\n 5. The recording of the executory contract or memorandum shall be\neffective for the purposes of subdivision four up to and including the\nthirtieth day after the day fixed by the contract for the conveyance of\ntitle. An agreement extending the time for the conveyance of title,\nacknowledged or proved, and certified, in the manner to entitle a\nconveyance to be recorded, may be recorded, and the recording shall be\neffective up to and including the thirtieth day after the day fixed by\nsuch agreement for the conveyance of title.\n 6. An executory contract or memorandum thereof shall not be deemed\nrecorded as provided in this section if it is recorded more than one\nyear previous to the date on which the vendor acquired title to the real\nproperty to which the contract relates.\n An executory contract recorded before the date when the vendor\nacquired title shall not be deemed recorded as provided in this section\nas against a person to whom the real property is conveyed or contracted\nto be sold or exchanged, by a conveyance or contract which is part of\nthe transaction in which the vendor acquired title.\n 7. An option to purchase or lease real property shall be deemed an\nexecutory contract within the meaning of this section, except that the\nrecording of the option agreement shall be effective only up to and\nincluding the thirtieth day after the last day fixed by the agreement\nfor the exercise of the option. If the option is exercised in accordance\nwith the terms of the option agreement, the optionee may extend the\neffectiveness of the recording of the option agreement to and including\nthe thirtieth day after the day fixed pursuant to the option agreement\nfor the conveyance of title or the execution and delivery of the lease,\nas the case may be, by recording, within thirty days after the last day\nfixed by the option agreement for the exercise of the option, a written\ndeclaration executed by the optionor and the optionee, or by the\noptionee alone, and acknowledged or proved and certified in the manner\nto entitle a conveyance to be recorded, stating that the said option has\nbeen duly exercised and setting forth the day fixed pursuant to the\noption agreement for the conveyance of title or the execution and\ndelivery of the lease, as the case may be. In the event that such\ndeclaration is executed by the optionee alone, it shall be verified by\nthe optionee and shall also set forth the time and manner in which such\noption was exercised and, if the last day for the conveyance of title or\nthe execution and delivery of the lease is not specified in the option\nagreement, the extension of the effectiveness of the recording of the\noption agreement shall in no event exceed ninety days from the date of\nthe recording of such declaration.\n 8. (a) After the recording of an executory contract or memorandum has\nceased to be effective as provided in subdivision five, or the recording\nof an option to purchase or lease real property has ceased to be\neffective as provided in subdivision seven, such executory contract,\nmemorandum or option shall be (1) void as against a subsequent purchaser\nin good faith and for a valuable consideration, who has no other notice\nof an estate or interest of the contract vendee or optionee in the\npremises to which such contract, memorandum or option refers, or of any\nclaim thereof, and (2) ineffective to give notice to such subsequent\npurchaser of any estate or interest of the contract vendee or optionee\nin such premises, or of any claim thereof, or to create any duty of\ninquiry with respect thereto.\n (b) For the purposes of this subdivision, "purchaser" includes a\nperson who purchases or acquires by exchange or contracts to purchase or\nacquire by exchange the same premises or any portion thereof or estate\nor interest therein, or acquires by assignment the rent to accrue from\ntenancies or subtenancies thereof in existence at the time of the\nassignment.\n