You are here: / / Question of Fact About Whether Good Faith Lender, Which Recorded Its Mortgage...

Question of Fact About Whether Good Faith Lender, Which Recorded Its Mortgage First, Had a Duty to Inquire About a Prior Mortgage

The Second Department determined there was a question of fact about the priority of a mortgage held by a good-faith lender for value and recorded first:

“Under New York’s Recording Act (Real Property Law § 291) a mortgage loses its priority to a subsequent mortgage where the subsequent mortgagee is a good-faith lender for value, and records its mortgage first without actual or constructive knowledge of the prior mortgage” … . “[A] mortgagee is under a duty to make an inquiry where it is aware of facts that would lead a reasonable, prudent lender to make inquiries of the circumstances of the transaction at issue” … . Here, the moving defendants demonstrated, prima facie, that they have a first lien with respect to Lot 56 by submitting evidence that they were good faith lenders for value protected by Real Property Law § 291 … . However, in opposition, the plaintiff’s submissions … raised a triable issue of fact as to whether the moving defendants had a duty to inquire about whether the mortgage previously entered into …. was intended to encumber the entirety of [the property].   Wells Fargo NA v Savinetti, 2014 NY Slip Op 02428, 2nd Dept 4-9-14

 

You might also like
TRIAL COURT PROPERLY GAVE THE GALBO JURY INSTRUCTION RE DEFENDANT’S POSSESSION OF STOLEN PROPERTY IN THIS BURGLARY CASE (SECOND DEPT).
INJURY FROM A CHAIN-LINK FENCE AT A CONSTRUCTION SITE WHICH BLEW OVER ONTO PLAINTIFFS NOT COVERED BY LABOR LAW 240 (1) OR 241 (6); QUESTIONS OF FACT RE: LABOR LAW 200 AND COMMON LAW NEGLIGENCE (SECOND DEPT).
Out-Of-Possession Landlord Not Liable for Missing Light in Stairwell
No Duty Owed by Agent to Client—Client Never Requested Type of Insurance At Issue
CONFLICTING EXPERT OPINIONS PRECLUDE SUMMARY JUDGMENT IN A MEDICAL MALPRACTICE ACTION; DEFENDANT, IN ITS MOTION FOR SUMMARY JUDGMENT, DID NOT DEMONSTRATE ENTITLEMENT TO SUMMARY JUDGMENT ON PROXIMATE CAUSE; THEREFORE PLAINTIFF, IN OPPOSITION, WAS NOT REQUIRED TO RAISE A QUESTION OF FACT ON THAT ISSUE (SECOND DEPT). ​
STATEMENTS IN A NEWSPAPER ARTICLE ABOUT PLAINTIFF’S DIVORCE WHICH REFERRED TO PLAINTIFF’S CONVICTION STEMMING FROM A BOILER ROOM PENNY STOCK OPERATION WERE ABSOLUTELY PRIVILEGED UNDER THE CIVIL RIGHTS LAW (SECOND DEPT).
Stipulation of Discontinuance With Prejudice in Federal Action Did Not Bar State Action Under the Doctrine of Res Judicata
Ornaments Hanging from Rear-View Mirror Justified Vehicle Stop

Categories

Sign Up for the Mailing List to Be Notified When the Site Is Updated.

  • This field is for validation purposes and should be left unchanged.

Copyright © 2026 New York Appellate Digest, Inc.
Site by CurlyHost | Privacy Policy

Plaintiff’s Allegation of Inadequate Lighting Was a Sufficient Indication... Waiver of Appeal Invalid