Real Property Actions and Proceedings Law (RPAPL)

THE RPAPL 1304 NOTICE REQUIREMENTS WERE CHANGED BETWEEN THE TIME THE NOTICE WAS SENT TO THE DEFENDANTS AND WHEN THE FORECLOSURE PROCEEDINGS WERE BROUGHT; THEREFORE THE RPAPL 1304 NOTICE WAS DEFECTIVE (SECOND DEPT).

The Second Department, reversing Supreme Court in this foreclosure action, determined plaintiff’s motion for summary judgment should not have been granted. The RPAPL 1304 notice requirements were changed between the time the notice was sent to defendants and when foreclosure action was commenced. Therefore the RPAPL 1304 notice, a condition precedent to any foreclosure action, was invalid:

Here, the plaintiff’s RPAPL 1304 notice, dated July 15, 2016, contained the statutory language that was in effect at the time of the notice. However, RPAPL 1304 was amended effective December 20, 2016, and the amendment changed the language that the statute required the notice to contain … . Thus, the plaintiff’s July 15, 2016 RPAPL 1304 notice did not satisfy the condition precedent to litigation for this action commenced in August 2017, after the effective date of the amendment … . Although this issue is raised for the first time on appeal, it may be reached as it involves a pure question of law that appears on the face of the record and could not have been avoided if brought to the court’s attention at the proper juncture … . Wilmington Sav. Fund Socy., FSB v Fischman, 2026 NY Slip Op 05212, Second Dept 9-2-26

Practice Point: The RPAPL 1304 foreclosure notice provisions were changed by amendment between the time the notice was sent to defendants and the action was brought, rendering the notice defective. The issue was properly raised for the first time on appeal.

September 2, 2026

Civil Procedure, Foreclosure, Real Property Actions and Proceedings Law (RPAPL)

ELECTRONIC FILING OF A MOTION TO CONFIRM A REFEREE’S REPORT AND FOR LEAVE TO ENTER A DEFICIENCY JUDGMENT IS NOT IN ACCORDANCE WITH THE SERVICE METHOD CODIFIED IN RPAPL 1371(2); HERE THE IMPROPER SERVICE WAS A BAR TO ENTRY OF THE DEFICIENCY JUDGMENT (SECOND DEPT).

The Second Department, reversing Supreme Court in this foreclosure action, determined the electronic filing of the motion to confirm the referee’s report and for leave to file a deficiency judgment was not proper service pursuant to RPAPL 1371(2). The improper service constituted a complete bar to the entry of a deficiency judgment:

The plaintiff … moved to confirm a referee’s report of sale and for leave to enter a deficiency judgment against Newman in the sum of $1,222,732.14. … Supreme Court granted the plaintiff’s motion. A judgment was entered … in favor of the plaintiff … . …

RPAPL 1371(2) specifies the manner in which notice of such motions shall be served, and upon whom the notice shall be served, as follows: “Simultaneously with the making of a motion for an order confirming the sale, . . . the party to whom such residue shall be owing may make a motion in the action for leave to enter a deficiency judgment upon notice to the party against whom such judgment is sought or the attorney who shall have appeared for such party in such action. Such notice shall be served personally or in such other manner as the court may direct.”

Here, the plaintiff’s electronic filing of the motion papers on the New York State Courts Electronic Filing System did not constitute proper service in accordance with RPAPL 1371(2) … Consequently, “‘this constitutes a complete bar to the entry of a deficiency judgment'” … . 11-36 31st Ave. Lender, LLC v RM Newman, LLC, 2026 NY Slip Op 05151, Second Dept 9-2-26

Practice Point: Electronic filing of a motion to confirm a referee’s report and for leave to enter a default judgment is improper service. The correct method of service is codified in RPAPL 1371(2).

September 2, 2026

Foreclosure, Real Property Actions and Proceedings Law (RPAPL)

SERVICE OF A VALID RPAPL 1304 NOTICE IS A CONDITION PRECEDENT TO A FORECLOSURE ACTION; HERE THE AMOUNT OWED INDICATED IN THE RPAPL 1304 NOTICES DIFFERED FROM THE AMOUNT OWED INDICATED IN THE COMPLAINT, RAISING A QUESTION OF FACT WHETHER THE RPAPL 1304 NOTICE WAS INCORRECT AND THEREFORE INVALID (SECOND DEPT).

The Second Department, reversing (modifying) Supreme Court in this foreclosure action, determined there were questions of fact about whether the RPAPL 1304 notices were defective on their faces. The amount owed indicated in the RPAPL 1304 notices differed from the amount owed described in the complaint. Service of a valid RPAPL 1304 notice is a condition precedent to a foreclosure action. There must be strict compliance with the RPAPL 1304 content requirements:

… [P]laintiff failed to tender sufficient evidence demonstrating the absence of triable issues of fact as to its strict compliance with the content requirements of RPAPL 1304. RPAPL 1304(1) requires that the 90-day notice state: “As of ___, your home loan is ___ days and ___ dollars in default.” The instant RPAPL 1304 notices stated: “As of 07/05/2023, your home loan is 4954 days and $735,151.56 dollars in default.” In contrast, the complaint stated that “there is now due and owing to the Plaintiff under said Note and Mortgage the principal sum of $440,882.36, with interest thereon from September 1, 2009.” Although the complaint noted that the plaintiff “only seeks to collect those installments which are within 6 years past due as of the date of commencement,” the complaint clarified in a footnote that the amount of $440,882.36 “reflects the unpaid principal balance as of the default date and interest paid through date.” At least one of these documents, then, contained an error concerning the amount due on the note—information that was required under RPAPL 1304. Residential Mtge. Loan Trust 2013-TT2 v Elshiekh. 2026 NY Slip Op 05124, Second Dept 8-26-26

Practice Point: If the amount owed indicated in the RPAPL 1304 notice is incorrect, the notice is invalid and this condition precedent for a foreclosure action has not been fulfilled.

August 26, 2026

Limited Liability Company Law, Real Property Actions and Proceedings Law (RPAPL), Trusts and Estates

PROPERTY OWNED BY A LIMITED LIABILITY COMPANY AND A TRUST IS NOT ENTITLED TO THE PROTECTIONS OF THE UNIFORM PARTITION OF HEIRS PROPERTY ACT (RPAPL 993); THOSE ENTITIES ARE NOT “INDIVIDUALS” WITHIN THE MEANING OF THE ACT (SECOND DEPT).

The Second Department, reversing Supreme Court in this partition action, in a full-fledged opinion by Justice Golla, determined a limited liability company and a trust are not “individuals” within the meaning of Real Property Actions and Proceedings Law (RPAPL) section 993:

In a case of first impression before this Court, we are asked to determine whether property owned wholly by a trust and a limited liability company may constitute “heirs property” pursuant to the Uniform Partition of Heirs Property Act (RPAPL 993). That question requires a determination as to whether a trust and a limited liability company are “individual[s]” within the meaning of RPAPL 993. … [W]e find that trusts and limited liability companies are not “individual[s]” under RPAPL 993. Property wholly owned by such entities, and not owned by individuals who acquired title from a relative, cannot be “heirs property” within the meaning of the statute. * * *

Here, the brothers, after owning the subject property themselves for more than half a century, put their interests in the subject property into these sophisticated legal entities. The owners’ status as sophisticated legal entities provides its own protections from predatory parties. In any event, here, there is no outside third party who is seeking to invade a family’s right to possess real property, further demonstrating that the owners are not entitled to the protections of RPAPL 993. Flouret v Sagland, LLC, 2026 NY Slip Op 05009, Second Dept 8-19-26

August 19, 2026

Civil Procedure, Foreclosure, Judges, Real Property Actions and Proceedings Law (RPAPL), Trusts and Estates

APPARENTLY THE MORTGAGOR WAS DECEASED AT THE TIME THE FORECLOSURE ACTION WAS COMMENCED RENDERING THE FORECLOSURE ACTION A NULLITY; SUPREME COURT DID NOT HAVE JURISDICTION, SO AMENDING THE CAPTION TO ADD THE EXECUTOR DID NOT EFFECTUATE JURISDICTION OVER THE ESTATE; ECHO BAY PURCHASED THE PROPERTY FROM THE MORTGAGOR’S SUCCESSORS FOUR YEARS LATER; ECHO BAY HAD THE RIGHT TO INTERVENE, MOVE TO VACATE THE JUDGMENT OF FORECLOSURE AND SALE, AND MOVE TO DISMISS THE COMPLAINT (SECOND DEPT).

The Second Department, reversing Supreme Court, granting the motion to intervene and dismissing the foreclosure complaint, apparently determined the mortgagor was deceased at the time the foreclosure action was brought rendering the action a nullity. Therefore Supreme Court did not have jurisdiction to amend the caption to add the mortgagor’s executor. For years later, Echo Bay purchased the property from the mortgagor’s successors and properly moved to intervene, to vacate the judgment of foreclosure and sale and to dismiss the complaint:

“‘A party may not commence a legal action or proceeding against a dead person'” … , and an action to foreclose a mortgage is a legal nullity insofar as asserted against a deceased mortgagor … . “A judgment or order issued without subject matter jurisdiction is void, and that defect may be raised at any time and may not be waived” … . * * *

… [T]he fact that Echo Ray obtained its interest in the property after the action was commenced and the notice of pendency was filed does not bar intervention … , and that branch of the plaintiff’s prior motion which was for leave to amend the caption to substitute the executor of [mortgagor’s] estate as a defendant in this action did not effectuate jurisdiction over her estate … . * * *

… Supreme Court should have granted those branches of the motion of Echo Ray which were pursuant to CPLR 5015(a)(4) to vacate the order and judgment of foreclosure and sale and to dismiss the complaint, as the action was a legal nullity insofar as asserted against [the mortgagor], the sole borrower and property owner as alleged in the complaint … . The owner of the property is an indispensable party to a foreclosure action (see RPAPL 1311[1] …). “The absence of an indispensable party mandates dismissal of the action, and the plaintiff cannot maintain the action as against the other defendants” … . Federal Natl. Mtge. Assn. v Jackson, 2026 NY Slip Op 04927, Second Dept 8-12-26

Practice Point: If the mortgagor is deceased when the foreclosure action is commenced, the action is a nullity and the judgment of foreclosure and sale is void. A subsequent purchaser of the property can successfully move to intervene, vacate the judgment and dismiss the foreclosure complaint.

August 12, 2026

Foreclosure, Real Property Actions and Proceedings Law (RPAPL)

THERE IS A QUESTION OF FACT WHETHER THE BANK USED THE CORRECT LANGUAGE IN ITS RPAPL 1304 NOTICE OF FORECLOSURE; THE LEGISLATION HAD BEEN AMENDED CHANGING “YOU COULD LOSE YOUR HOME” TO “YOU MAY BE AT RISK OF FORECLOSURE;” RPAPL 1304 MUST BE STRICTLY COMPLIED WITH (SECOND DEPT).

The Second Department, reversing Supreme Court, determined the defendants in this foreclosure action raised a question of fact whether the bank complied with the notice requirements in RPAPL 1304, which had been changed prior to the commencement of the foreclosure action:

On December 20, 2016, the Legislature amended RPAPL 1304 to change the language required in the 90-day notice … . The amendment changed the opening language from “YOU COULD LOSE YOUR HOME” to “YOU MAY BE AT RISK OF FORECLOSURE” … . The amendment also added the language: “IMPORTANT: You have the right to remain in your home until you receive a court order telling you to leave the property. If a foreclosure action is filed against you in court, you still have the right to remain in the home until a court orders you to leave. You legally remain the owner of and are responsible for the property until the property is sold by you or by order of the court at the conclusion of any foreclosure proceedings. This notice is not an eviction notice, and a foreclosure action has not yet been commenced against you” … . This statutory language was in effect at the time this action was commenced, in July 2018 … .

Here, the plaintiff failed to establish that the notice sent to the defendants complied with the statutory language of RPAPL 1304 as it existed at the commencement of the action. Since the notice was sent more than a year and a half prior to the commencement of the action, nothing prevented the plaintiff from sending the defendants a new RPAPL 1304 notice, using the updated language, 90 days prior to commencing the action … . The defendants, therefore, raised a triable issue of fact as to whether the plaintiff strictly complied with RPAPL 1304 as it existed at the time the action was commenced. Bank of Am., N.A. v Thomas, 2026 NY Slip Op 04485, Second Dept 7-22-26

Practice Point: Here the bank failed to establish it used the correct statutory language in its RPAPL 1304 notice of foreclosure, raising a question of fact about whether RPAPL 1304 was strictly complied with.

July 22, 2026

Real Property Actions and Proceedings Law (RPAPL)

IF THE FACTS FIT THE STATUTORY CRITERIA OF THE “HEIRS ACT” (RPAPL 993(2)), THE ACT MUST BE APPLIED TO A PARTITION ACTION RE: PROPERTY HELD BY TENANTS-IN-COMMON (FIRST DEPT).

The First Department, remitting the matter, determined Supreme Court should have applied the Heirs Act to this partition action re: property held as tenants-in-common. The First Department noted that if the facts fit the requirements of RPAPL 993(2) (the Heirs Act), the Act must be applied:

The Heirs Act does not apply in all cases where real property is owned by tenants-in-common. Rather, “heirs property” is defined as real property that is held in tenancy in common and satisfies all of the following requirements: there is no agreement in a record binding all of the co-tenants which governs the partition of the property (RPAPL 993[2][e][i]); any of the co-tenants acquired title from a relative (RPAPL 993[2][e][i]); the property is used for residential or agricultural purposes (RPAPL 993[2][e][iii]); and any of the following applies: (a) 20% or more of the interests are held by co-tenants who are relatives; (b) 20% or more of the interests are held by an individual who acquired title from a relative, whether living or deceased; (c) 20% or more of the co-tenants are relatives of each other; or (d) any co-tenant who acquired title from a relative resides in the property (RPAPL 993[2][e][iv][A]-[D]).

Construing unambiguous language to give effect to its plain meaning, as we must …, we find that the Heirs Act is applicable in this action because all of the conditions noted in RPAPL 993(2)(e) were satisfied. There was no agreement in the record governing the partition of the property; both parties acquired their interest from their mother; the property was used as a residence; and all of the conditions set forth in RPAPL 9939(2)(e)(iv) were present. Thus, the statute unambiguously applies to the parties here and expressly takes precedence over the traditional partition proceedings under RPAPL 901(1) (RPAPL 993[3][c]). Accordingly, the matter should be remitted to Supreme Court to comply with the requirements of the Heirs Act. Williams v Williams, 2026 NY Slip Op 03902, First Dept 6-18-26

Practice Point: Consult this decision for the circumstances under which the “Heirs Act” must be applied to a partition action re: property held by tenants-in-common.

June 18, 2026

Real Property Actions and Proceedings Law (RPAPL), Real Property Law

WHEN DOES A RESTRICTIVE COVENANT RUN WITH THE LAND? WHEN IS A RESTRICIVE COVENANT EXTINGUISHED BY MERGER? WHEN IS A RESTRICTIVE COVENANT RENDERED UNENFORCEABLE PURSUANT TO RPAPL 1951?

The Second Department, reversing (modifying) Supreme Court, determined a restrictive covenant prohibiting the development of land in a conservation district ran with the land, although there remains a question of fact whether the covenant was rendered unenforceable pursuant to RPAPL 1951. Plaintiff sought to build a home on the land:

“[A] restrictive covenant will run with the land and will be enforceable against a subsequent purchaser of the land when the following requirements are satisfied: (1) it must appear that grantor and grantee intended that the covenant should run with the land; (2) it must appear that the covenant is one touching or concerning the land with which it runs; [and] (3) it must appear that there is privity of estate between the promisee or party claiming the benefit of the covenant and the right to enforce it, and the promisor or party who rests under the burden of the covenant” … . The only one of these requirements at issue on this appeal is the intent of the parties, “which must be determined from the instrument and, if necessary, by looking also to the surrounding circumstances” … .

Here, the 2000 deed did not expressly recite that the restrictive covenant was to run with the land. Although that deed contained language providing that the County conveyed to BPC Holding, and to its “heirs or successors and assigns,” the right to have and to hold the property, subject to the restrictive covenant, the mere presence of that language was not sufficient, standing alone, to establish that the grantor and the grantee intended that the restrictive covenant run with the land … .

Nevertheless, the County defendants and the Town defendants established, prima facie, that the restrictive covenant was intended to run with the land based upon the surrounding circumstances…. . * * *

“In order to state a cause of action pursuant to RPAPL 1951, a plaintiff seeking a declaration that a restrictive covenant is unenforceable must allege that, upon a balancing of the equities, the restrictive covenant is of no actual and substantial benefit to the party seeking to enforce it” … . Here, the County defendants and the Town defendants failed to establish, prima facie, that the plaintiff’s alleged hardships due to the restrictive covenant did not “tip the balance of equities in favor of extinguishing [the restrictive covenant]” pursuant to RPAPL 1951(2) … . U & Me Homes, LLC v County of Suffolk, 2026 NY Slip Op 03331, Second Dept 5-27-26

Practice Point: Consult this decision for an in-depth discussion of the criteria for a restrictive covenant which runs with the land, the criteria for extinguishing a restrictive covenant by merger, and the criteria for rendering a restrictive covenant unenforceable pursuant to RPAPL 1951 because of the hardship it imposes.

May 27, 2026

Foreclosure, Real Property Actions and Proceedings Law (RPAPL)

THE BANK SENT THE RPAPL 1304 NOTICE OF FORECLOSURE TO THE TWO BORROWERS IN THE SAME ENVELOPE, A VIOLATION OF RPAPL 1304; FORECLOSURE COMPLAINT DISMISSED (SECOND DEPT).

The Second Department, reversing Supreme Court, determined the foreclosure complaint should have been dismissed because the RPAPL 1304 notice of foreclosure was mailed to both borrowers in the same envelope:

RPAPL 1304(1) provides that “at least ninety days before a lender, an assignee or a mortgage loan servicer commences legal action against the borrower, . . . including mortgage foreclosure, such lender, assignee or mortgage loan servicer shall give notice to the borrower.” “Strict compliance with RPAPL 1304 notice to the borrower or borrowers is a condition precedent to the commencement of a foreclosure action” … , and “the plaintiff has the burden of establishing satisfaction of this condition” … . “[T]he mailing of a 90-day notice jointly addressed to two or more borrowers in a single envelope is not sufficient to satisfy the requirements of RPAPL 1304, and . . . the plaintiff must separately mail a 90-day notice to each borrower as a condition precedent to commencing the foreclosure action” … * * *

… [T]he defendants established that the plaintiff failed to comply with RPAPL 1304 since it is undisputed that a jointly addressed 90-day notice, rather than individually addressed notices in separate envelopes, was sent to the defendants … . HSBC Bank USA, N.A. v Palmore, 2026 NY Slip Op 03152, Second Dept 5-20-26

Practice Point: The bank’s strict compliance with the notice of foreclosure requirements in RPAPL 1304 is a condition precedent to any foreclosure action. Here, sending the RPAPL 1304 notice of foreclosure to the two borrowers in the same envelope violated RPAPL 1304 requiring dismissal of the foreclosure complaint.

May 20, 2026

Foreclosure, Real Property Actions and Proceedings Law (RPAPL)

RPAPL 1301, WHICH PROHIBITS SIMULTANEOUS ACTIONS AT LAW TO RECOVER ON A NOTE AND ACTIONS IN EQUITY TO FORECLOSE A MORTGAGE, DOES NOT APPLY TO OUT-OF-STATE PROPERTIES; RPAPL 1371 DOES NOT APPLY TO OUT-OF-STATE FORECLOSURES AND THEREFORE DOES NOT PROVIDE A BASIS TO DEEM A JUDGMENT SATISFIED UPON A FORECLOSURE SALE (FIRST DEPT).

The First Department noted that RPAPL 1301 and 1371 do not apply to out-of-state foreclosures:

The motion court properly rejected defendants’ position that RPAPL 1301 was a ground to deny plaintiff’s motion. That section “prohibits a mortgage lender seeking repayment of a loan from simultaneously prosecuting an action at law to recover upon a promissory note and an action in equity to foreclose the mortgage” … . However, RPAPL 1301 does not apply “where, as here, the property securing the loan is located outside of New York State” … . This is the case even though the parties in their loan documents agreed that New York law would govern any disputes arising from the agreements.

Similarly, RPAPL 1371 does not apply to out-of-state foreclosures and therefore does not provide a basis to deem the judgment against defendants satisfied upon the foreclosure sale of the properties … . Thus, defendants’ motion seeking an order deeming the judgment satisfied because plaintiff failed to move for a deficiency judgment after the out-of-state properties were foreclosed upon and sold was also properly denied. WPC Billboard Lender LLC v Bartkowski, 2026 NY Slip Op 02951, First Dept 5-12-26

May 12, 2026

THE RPAPL 1304 NOTICE REQUIREMENTS WERE CHANGED BETWEEN THE TIME THE NOTICE WAS SENT TO THE DEFENDANTS AND WHEN THE FORECLOSURE PROCEEDINGS WERE BROUGHT; THEREFORE THE RPAPL 1304 NOTICE WAS DEFECTIVE (SECOND DEPT).

ELECTRONIC FILING OF A MOTION TO CONFIRM A REFEREE’S REPORT AND FOR LEAVE TO ENTER A DEFICIENCY JUDGMENT IS NOT IN ACCORDANCE WITH THE SERVICE METHOD CODIFIED IN RPAPL 1371(2); HERE THE IMPROPER SERVICE WAS A BAR TO ENTRY OF THE DEFICIENCY JUDGMENT (SECOND DEPT).

PROPERTY OWNED BY A LIMITED LIABILITY COMPANY AND A TRUST IS NOT ENTITLED TO THE PROTECTIONS OF THE UNIFORM PARTITION OF HEIRS PROPERTY ACT (RPAPL 993); THOSE ENTITIES ARE NOT “INDIVIDUALS” WITHIN THE MEANING OF THE ACT (SECOND DEPT).

THERE IS A QUESTION OF FACT WHETHER THE BANK USED THE CORRECT LANGUAGE IN ITS RPAPL 1304 NOTICE OF FORECLOSURE; THE LEGISLATION HAD BEEN AMENDED CHANGING “YOU COULD LOSE YOUR HOME” TO “YOU MAY BE AT RISK OF FORECLOSURE;” RPAPL 1304 MUST BE STRICTLY COMPLIED WITH (SECOND DEPT).

IF THE FACTS FIT THE STATUTORY CRITERIA OF THE “HEIRS ACT” (RPAPL 993(2)), THE ACT MUST BE APPLIED TO A PARTITION ACTION RE: PROPERTY HELD BY TENANTS-IN-COMMON (FIRST DEPT).

WHEN DOES A RESTRICTIVE COVENANT RUN WITH THE LAND? WHEN IS A RESTRICIVE COVENANT EXTINGUISHED BY MERGER? WHEN IS A RESTRICTIVE COVENANT RENDERED UNENFORCEABLE PURSUANT TO RPAPL 1951?

THE BANK SENT THE RPAPL 1304 NOTICE OF FORECLOSURE TO THE TWO BORROWERS IN THE SAME ENVELOPE, A VIOLATION OF RPAPL 1304; FORECLOSURE COMPLAINT DISMISSED (SECOND DEPT).

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