NYLE - New York Law NY Real Property Law Questions and Answers — Questions and Answers
Question 1: A tenant in a Manhattan apartment provides written notice to her landlord that there has been no hot water for ten consecutive days. The landlord fails to remedy the situation. Under New York Real Property Law § 235-b, which of the following actions is a permissible remedy for the tenant?
- Terminate the lease immediately and sue for moving expenses.
- Withhold rent and use the landlord's breach of the warranty of habitability as a defense in a non-payment proceeding. (Correct answer)
- Pay for a plumber to fix the issue and deduct the full cost from the next month's rent without further action.
- Continue paying rent but file a complaint with the local police department for criminal negligence.
Correct answer: Withhold rent and use the landlord's breach of the warranty of habitability as a defense in a non-payment proceeding.
New York Real Property Law § 235-b implies a warranty of habitability into every residential lease, ensuring the premises are safe and livable. When a landlord breaches this warranty, a tenant may withhold rent. The landlord may then sue for non-payment, and the tenant can raise the breach as a defense and counterclaim, allowing a court to determine a fair rent abatement for the period the condition existed.
Question 2: A married couple purchases a home in Queens, and the deed conveys the property to them as husband and wife. A few years later, a creditor obtains a significant money judgment solely against the husband. What is the creditor's most likely recourse against the house?
- The creditor can force a partition and sale of the entire property to satisfy the debt.
- The creditor can place a lien on the husband's interest, but cannot defeat the wife's right of survivorship or force a sale while the couple remains married. (Correct answer)
- The tenancy by the entirety is automatically severed, converting it to a tenancy in common, allowing the creditor to seize the husband's 50% share.
- The creditor has no rights against the property whatsoever because property held by the entirety is completely immune from the debts of one spouse.
Correct answer: The creditor can place a lien on the husband's interest, but cannot defeat the wife's right of survivorship or force a sale while the couple remains married.
In New York, a conveyance to a married couple creates a tenancy by the entirety. This form of ownership protects the property from the individual creditors of one spouse to the extent that a creditor cannot force a partition or sale of the property to satisfy the debt. The creditor can place a lien on the debtor spouse's interest, which only becomes a possessory interest if the non-debtor spouse predeceases the debtor spouse.
Question 3: On June 1, Owner conveys a parcel of land to Buyer A, who does not record the deed. On June 10, Owner fraudulently conveys the same parcel to Buyer B, who pays fair market value and has no knowledge of the prior conveyance. On June 15, Buyer B records her deed. On June 20, Buyer A records his deed. Under New York's recording statute, who has superior title?
- Buyer A, because his deed was delivered first.
- Title is split equally between Buyer A and Buyer B.
- The Owner, because the fraudulent conveyances cancel each other out.
- Buyer B, because she was a good faith purchaser for value who recorded first. (Correct answer)
Correct answer: Buyer B, because she was a good faith purchaser for value who recorded first.
New York is a 'race-notice' jurisdiction under Real Property Law § 291. This means a subsequent purchaser for valuable consideration and without notice of a prior unrecorded instrument will have priority if they record their conveyance first. Here, Buyer B was a bona fide purchaser for value without notice, and she recorded her deed (June 15) before Buyer A recorded his (June 20). Therefore, Buyer B has superior title.
Question 4: Which of the following is a required element for a successful adverse possession claim filed in New York after the 2008 amendments to the Real Property Actions and Proceedings Law (RPAPL)?
- Possession for a continuous period of 20 years.
- The claimant must have paid property taxes on the parcel for the entire duration.
- A reasonable basis for the belief that the property belongs to the adverse possessor. (Correct answer)
- The claimant must have acted with hostile intent to dispossess the true owner.
Correct answer: A reasonable basis for the belief that the property belongs to the adverse possessor.
The 2008 amendments to the RPAPL changed the 'claim of right' element. A claimant must now have a reasonable basis for believing they own the property; possessing the property with knowledge that it belongs to another is insufficient. The statutory period remains 10 years, not 20. Payment of taxes is evidence of a claim but not a required element, and 'hostile' possession refers to being adverse to the owner's rights, not malicious intent.
Question 5: A seller conveys a commercial property to a buyer using a standard quitclaim deed. Two months after the closing, the buyer discovers that the seller's original title was defective and a third party has a valid claim to ownership. What recourse does the buyer have against the seller based on the deed?
- The buyer can sue the seller for breach of the covenant of warranty.
- The buyer has no recourse against the seller under the terms of the quitclaim deed. (Correct answer)
- The buyer can rescind the sale due to the seller's breach of the covenant of seisin.
- The buyer can compel the seller to pay to defend the title against the third party's claim.
Correct answer: The buyer has no recourse against the seller under the terms of the quitclaim deed.
A quitclaim deed provides no warranties or guarantees about the title. The grantor simply transfers whatever interest they may have, if any, to the grantee. Because it contains no covenants of title (such as the covenant of seisin or warranty), the buyer assumes all risk of title defects and has no contractual claim against the seller based on the deed if the title fails.
Question 6: How does New York law legally classify a mortgage given by a property owner to a lender?
- As a transfer of legal title to the lender, which is reconveyed upon loan satisfaction.
- As a joint venture agreement between the borrower and the lender.
- As a lien on the property that serves as security for a debt, while the borrower retains legal title. (Correct answer)
- As an executory contract that only becomes a real property interest upon the borrower's default.
Correct answer: As a lien on the property that serves as security for a debt, while the borrower retains legal title.
New York is a 'lien theory' state. This means the mortgage instrument does not convey title to the lender. Instead, it creates a lien on the property to secure the debt, while the borrower (mortgagor) retains both legal and equitable title to the property unless and until a successful foreclosure action.
NYLE - New York Law NY Real Property Law Questions and Answers
A tenant in a Manhattan apartment provides written notice to her landlord that there has been no hot water for ten consecutive days.
The landlord fails to remedy the situation.
Under New York Real Property Law § 235-b, which of the following actions is a permissible remedy for the tenant?