Bulletin: NY000146

Dear Associates:

On May 23, 1997, Section 321 5(a) of the Real Property Law was amended (Chapter 71 of the Laws of 1997) to expand the definition of "personal representative" to include a voluntary administrator. Section 321 identifies the persons or representatives who may execute a discharge of mortgage. Prior to the enactment of Chapter 71, a personal representative of a decedent could, in certain cases, sign a discharge pursuant to the provisions of Section 321, but the definition of the term "personal representative" did not include a voluntary administrator (i.e., one who qualifies and undertakes to settle the estate of decedent who dies leaving personal property having a gross value of $10,000 or less). By reason of the amendment, a voluntary administrator can now execute a satisfaction of mortgage pursuant to the provisions of Section 321.

Notwithstanding this change in the law, it should be noted that a voluntary administrator cannot administer real property owned by a decedent. His authority is limited to the administration of personal property of $10,000 or less. Although the amendment should be useful to a title insurer in omitting as a title exception a small mortgage held by a decedent (based upon the receipt of a satisfaction executed by a voluntary administrator), transfers of real property owned by a decedent cannot be effectuated by a voluntary administrator. Such transfers will require, in most cases, a deed from an executor or administrator, as the case may be, appointed pursuant to a probate or administration proceeding.

Should you have any questions regarding the recent change in the law, please contact the New York City office.