§ 1194 — Foreclosure of tax lien as in an action to foreclose a mortgage

New York § 1194

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 5: Sales of Delinquent Tax Liens
• Art. 11: Procedures For Enforcement of Collection of Delinquent Taxes

Text

§ 1194. Foreclosure of tax lien as in an action to foreclose a\nmortgage. 1. Upon the expiration of the redemption period prescribed by\nlaw, the purchaser of a delinquent tax lien, or its successors or\nassigns, may foreclose the lien as in an action to foreclose a mortgage.\nThe procedure in such action shall be the procedure prescribed by\narticle thirteen of the real property actions and proceedings law for\nthe foreclosure of mortgages, except as herein otherwise provided. The\ncomplaint in any such action shall be duly verified. At any time\nfollowing the commencement of an action to foreclose a lien, the amount\nrequired to redeem the lien, or the amount received upon sale of a\nproperty, shall include reasonable attorneys' fees, legal costs,\nallowances and disbursements.\n 2. In addition to the parties named in section thirteen hundred eleven\nof the real property actions and proceedings law, the owners of all tax\nliens upon the real property concerned and all tax districts having a\nright to assess such real property may be made parties defendant.\n 3. Where the defendants personally served with the summons and\ncomplaint are not infants, incompetents, conservatees or non-residents\nof the state, and do not appear or answer, judgment by default may be\ntaken without application to the court.\n 4. In all other cases, including those where a defendant is an infant,\nincompetent or conservatee and has put in a general answer by his or her\nguardian, committee or conservator, or where any of the defendants are\nnon-residents of the state, judgment may be entered upon application to\nthe court, but the court shall take proof of the facts and circumstances\nstated in the complaint and ascertain and determine the amount due\nwithout reference, unless the plaintiff apply for reference.\n 5. The plaintiff shall include and join in one action all tax liens on\nthe same real property or any part thereof which are held by the\nplaintiff and which are subject to foreclosure as provided in this\narticle. The plaintiff may include and join in one action all tax liens\nheld by the plaintiff, although imposed upon separate and distinct\nparcels of real property; provided, however, that the description of the\nparticular parcels upon which such tax liens have been imposed are\ndistinctly set forth in separate paragraphs of the complaint, and such\nparcels shall be separately sold in such action; and provided, further,\nthat any defendant having an interest in or lien upon one or more\nseparate parcels so joined shall have the absolute right to a severance\nof the action as to such parcel or parcels upon written demand filed\nwith or made a part of his or her answer. The state and any tax district\nthereof having a lien for taxes or other lawful charges on the real\nproperty described in the complaint which arises before the filing of\nthe notice of pendency may be made defendants, and the nature of their\nrespective interests shall be specifically stated.\n 6. It shall not be necessary for the plaintiff to plead or prove the\nvarious steps, procedures and notices for the levy of the tax sought to\nbe foreclosed, other than to allege the nature and amount of the tax and\nthat the same was duly levied, but all such acts, procedures and notices\nshall be presumed to be valid unless questioned by an answer duly filed.\nA defendant who has a tax lien evidenced by a certificate of sale or\nother written instrument shall include in his or her answer a copy of\nsuch instrument and a statement of the interest, penalties and other\nlegal charges due on account thereof. A defendant alleging any\njurisdictional defect or invalidity in the tax or the sale thereof shall\nparticularly specify in his or her answer such jurisdictional defect or\ninvalidity and shall affirmatively establish such defense. Every answer\nshall be duly verified.\n 7. The court shall have full power to determine and enforce in all\nrespects the priorities, rights, claims and demands of the several\nparties to such action, including the priorities, rights, claims and\ndemands of the defendants as between themselves, and to direct a sale of\nsuch real property and the distribution or other disposition of the\nproceeds of the sale, except as otherwise provided in this article. Any\nparty to the action may become the purchaser at any such sale.\n 9. After the payment of all legal costs, including reasonable\nattorneys' fees, allowances and disbursements, the tax liens shall be\npaid in the order of priority as listed and determined in the judgment\npursuant to subdivision seven of this section. All parties to the action\nwho are the owners of tax liens affecting such real property, equal in\nright, shall be paid from the proceeds of the sale, so far as the\nproceeds suffice to pay the same, the amounts of their respective liens\nin the ratio to which the amount of the tax lien of each such party\nbears to the sum available for distribution as herein provided.\n 10. The conveyance made pursuant to a judgment in any action brought\nunder this title shall vest in the purchaser all right, title, interest,\nclaim, lien and equity of redemption in and against the real property\nsold of all parties to the action, and of all persons whose right,\ntitle, interest, claim, lien or equity of redemption has accrued\nsubsequent in time to the filing of the notice of the pendency of the\naction by assignment of an interest existing prior thereto from one of\nthe parties to the action or any or either of them. All such parties and\npersons shall be barred and forever foreclosed by the judgment in such\naction of all right, title, interest, claim, lien and equity of\nredemption in and to the real property sold or any part thereof, except\nthat the conveyance shall be subject to all taxes or other legal charges\nof all tax districts which accrued subsequent to the taxes or other\nlegal charges which were the subject of the action. Notwithstanding the\nprovisions of subdivision two of section thirteen hundred fifty-four of\nthe real property actions and proceedings law, this subdivision shall\nprevail.\n 11. Where a party to the action or a prospective purchaser seeks to\ninspect the real property prior to the conveyance in order to ascertain\nwhether, and to what extent, it is environmentally impaired, and\npermission to enter has been refused, such party or prospective\npurchaser may petition the court for license to so enter. The motion and\naffidavits, if any, shall state the facts making such entry necessary,\nand the date or dates on which entry is sought. Such license shall be\ngranted by the court in an appropriate case upon such terms as justice\nrequires. If the property is redeemed prior to conveyance, the licensee\nshall be liable to the owner for any actual damages occurring as a\nresult of the entry.\n