Federal Tax Liens

Notice of Federal Tax Lien against __________________ in the amount of ____________, plus costs, interest and additional taxes recorded ____________.
Comment: Federal tax lien notices are now effective for 10 years and 30 days after date of assessment. They may be extended for additional 10 year periods by refiling.

Rights of the United States to redeem for 120 days from ________________ arising out of the foreclosure evidenced by ________________ recorded __________________.
Comment: In the event of a nonjudicial foreclosure of a prior lien, the U.S. is entitled to 25 day notice of foreclosure if the federal tax lien notice was recorded more than 30 days before foreclosure. If the U.S. is not given proper notice, the lien is unaffected and must be excepted. If the U.S. is given proper notice, it still has a right for redemption for 120 days or any longer time allowed by state law.
In the event of a judicial foreclosure of a prior lien, the U.S. has a right for 120 days or any longer time allowed by state law.

The notice must contain the following information, in "simple and non-technical terms:":

(a) a brief statement of the statute and applicable procedure relating to levy & distraint sale;
(b) the administrative appeals available to the taxpayer;
(c) alternatives available to the taxpayer; and
(d) the provisions and procedures relating to redemption and release of liens.

If proper notice was given by personal delivery to the taxpayer, no further exception need be raised.

If the notice was not delivered in person, or by certified or registered mail with receipt requested (and a copy of the receipt signed by the taxpayer is produced), the following exception will be raised:

(a) the time and place of publication;
(b) a copy of the published notice, with an affidavit of publication from the newspaper publisher;
(c) an affidavit of regularity from the official conducting the sale, setting forth the details and particulars of the sale, including the date, time and place the sale took place, identification of persons who attended, the manner of bidding used, the amount of the successful bid and the identity of the bidder.

Note: You may add additional local exceptions here. Please consult with our underwriting personnel in preparing appropriate provisions.

Note: You may add additional local exceptions here. Please consult with our underwriting personnel in preparing appropriate provisions.

{fill in appropriate clauses:}

has expired. A new notice must be filed more than 20 days prior to the entry of the final judgment of foreclosure and sale.

must be filed more than 20 days prior to the entry of the final judgment of foreclosure and sale.

has not been filed as provided in RPAPL § 1331. The judgment of foreclosure and sale is therefore not effective.

is not effective because the defendant was not served within 30 days of the filing of the Notice, as required pursuant to CPLR § 6512. Judgment of Foreclosure and Sale is not effective in the absence of a curative order, provided no party or person has been prejudiced thereby.

Date of sale is the auction date, not the date of delivery of the referee’s deed.

The proofs required are:

(a) proof of the fairness of the transaction
(b) the deed contains a non-merger recital regarding the interest of the mortgage
(c) a written agreement between the parties is submitted and reviewed, which provides that the release of the mortgagee from personal liability on the debt is consideration, as is the release of any guarantors. Where possible additional consideration flowing to the mortgagor should be considered, and if the mortgage loan is non-recourse, must be provided for. If the grantor is a corporation, all corporation requirements must be raised.

If the applicant has made investigation or inspection which discloses that there are other persons having an interest in the property whose rights are subordinate to the mortgage being foreclosed, such persons should also be named as parties defendant after the search has been amended.

If there are any leases, mortgages or other liens recorded prior to the period covered by this search which are in fact subordinate to the mortgage being foreclosed, by subordination agreement or otherwise, all persons interested in such leases, mortgages or other liens should also be made parties defendant after the search has been amended, all persons interested in such mortgages should also be made parties defendant after the search has been amended.

If there are any mortgages recorded prior to the period covered by this search which have been paid in full, but for which the satisfaction, discharge or release have not been recorded, or if there are any mortgages which have been fully paid which have not been otherwise satisfied of record, all persons interested in such mortgages should also be made parties defendant after the search has been amended.

This certificate does not This certificate does not provide any assurance that any tenant or person coming into possession of the mortgaged premises after the filing of the notice of pendency shall be on constructive notice of the action. The plaintiff should make an investigation as to persons in possession prior to the entry of judgment.

The addresses of parties and the names of corporate officers shown in this certificate were obtained from the record and are not represented to be the present addresses of the parties or the present corporate officers.

The applicant should consider the desirability of naming as parties defendant any obligors on the bond or note secured by the mortgage, or in any extension, assumption or guaranty agreement.

If the United States of America, the State of New York, or a municipality, or any department, agency or instrumentality of any of them, acquires an interest in, or a lien upon, the premises, by assignment or otherwise, even after the filing of the notice of pendency, consideration should be given to the desirability of bringing in the United States of America, the State of New York, or such municipality, or any department, agency or instrumentality of any of them as a party defendant. If the United States of America, the State of New York, or a municipality, or any department, agency or instrumentality of any of them are made parties, the complaint must set forth the reason therefor with particularity. The United States has one year from the date of the sale in which to redeem (or 120 days if pursuant to a federal tax lien). Particular attention should be given to the special requirements of the Federal Deposit Insurance Corporation in connection with mortgages or liens which may be held in the name of a banking or thrift institution in conservatorship or receivership, or in the name of the Resolution Trust Corporation.

The Company should be requested to continue searches to the date of the filing of the notice of pendency, to a date immediately prior to the entry of judgment, and to the date of sale pursuant thereto. In counties where recordings and filings are not promptly made by the clerk or recording officer, it may be advisable to run a search immediately before obtaining the order of reference, in order to ascertain whether any matters have appeared on the record as of a date prior to the date of filing of the notice of pendency, which were not actually on file at the time the notice of pendency was filed.

Upon any continuation, no examination will be made of the notice of pendency or any other papers filed in the action. All parties must be served or must appear or answer within 120 days of the commencement of the case by filing, and the appropriate affidavit of service, notice of appearance or answer must be filed with the court within such period, or the action shall be deemed to be dismissed against such party.

The following should also be made parties defendant in an action to foreclose the mortgage identified herein as “the mortgage to be foreclosed.”

Parties  Interest in Premises
 and their addresses.

Owner(s) of record by deed dated __/__/__ and recorded on __/__/__ in _________

[Note that a Surrogate’s search should be made in the county where the premises is located to determine if any owner is deceased. If title is in a surviving tenant by the entirety or joint tenant, the certification should read:

Surviving (specify tenancy). Who acquired title together with ______, (who died (in)testate in ________ County on __/__/__, by deed dated __/__/__ and recorded on __/__/__ in _________ .]

[Also note that if the owner of record is deceased, and the Company shows an Estate, the Executor or Administrator is a proper party defendant and any Trustee of a Trusty (whether testamentary or inter vivos) which is in title is a necessary party defendant. The distributees of an intestate decedent are also necessary parties, to cut off their interests (although in many cases a deficiency judgment is not enforceable against a distributee). See Estates Powers and Trusts Law (EPTL) §12-1.1, and consult with Counsel for any questions.]

Obligors on __________.

[Note that this will usually be based on information provided by the applicant - this should be so noted in the report.]
 addresses.

Holder of subordinate mortgage made by ________ for $_________, dated __/__/__ and recorded on __/__/__ in ___________.
 addresses.

Judgment creditor pursuant to judgment for $__________, entered __/__/__ in ______ Court under index no. ______, and docketed on __/__/__ in the County Clerk’s office.
 addresses.

Specify details as to type of lien, amount, date, docketing information.


[Note: If the mortgage to be foreclosed is a first mortgage lien on a condominium unit (or one of the specified second mortgages referred to in RPL § 339-z), the Board of Managers of the Condominium should be named and served, to cut off the lien of unpaid common charges.]

Specify all the details known regarding the lien to be cut off. If the lien is not definite, something like “possible New York State Franchise Taxes of ABC Corp., which may be a lien upon the premises” should be adequate.

[Note: RPAPL § 202 requires that where the State of New York or any department, bureau, board, commission, council, officer, agency or instrumentality of the State is made a party defendant, the complaint must provide detailed facts showing the particular nature of the interest or lien.]

Specify all the details known regarding the lien to be cut off. If the lien is not definite, something like “possible New York City Corporate Taxes of ABC Corp., which may be a lien upon the premises” should be adequate.

[Note: RPAPL § 202-a requires that where the City of New York or any department, bureau, board, commission, officer, agency or instrumentality of the City of New York is made a party defendant, the complaint must provide detailed facts showing the particular nature of the interest or lien.]
 of the State or City (e.g. The New York
 City Parking Violations Bureau)

Specify all the details known regarding the lien to be cut off. E.g. “parking violation judgments shown on the attached schedule” should be adequate.

[Note: RPAPL § 202 or 202-a requires particularity in pleading.]
 or an agency, etc.
  Provide all details

[Note: Pleadings naming the United States of America or a department, agency or instrumentality of the USA as a party defendant must set forth with particularity the nature of the interest or lien of the United States with respect to the property.]

[Note: Where the lien of the United States of America is pursuant to a federal tax lien, the complaint must set forth the name and address of the taxpayer, the identity of the IRS office which filed the Notice of Lien, and the date of filing and place of filing of the lien. See 28 USC § 2410 ( b).]

[Note: In all cases where it becomes necessary to name the United States of America as a party defendant, attorneys should consider the provision of sixty days’ time in which to answer, the appropriate method of service, and the applicable redemption period. See 28 USC §§ 2410 and 2412.

Any party who by bond, note, extension agreement or otherwise may be liable for a deficiency judgment, if such deficiency judgment is desired.

Any party in possession of any part of the mortgaged premises whose interest plaintiff desires to bar.
b. The complaint requested forfeiture of the specific land and alleged specific bases for forfeiture;
c. All owners and lienholders (including spouses with marital or community property rights) of the land who are not executing deeds or releases received notice by personal service as evidenced by a review of the process receipt and return;
d. The government published notice of the proposed forfeiture in the federal district where the land is located (and the district where the proceeding occurs, if a different district);
e. An order authorized forfeiture of the specific land;
f. The order is final and nonappealable. Finality may be evidenced by a letter from the United States Attorney’s Office or other knowledgeable party;
g. The forfeiture occurred in the federal district where the land is located or in the district where criminal prosecution, if any, of the owner occurred;
h. If an owner of the land has been subject to criminal prosecution, that prosecution must be final and no longer subject to appeal;
I. Recordation of certified copies of the order for warrant of arrest, order of forfeiture and evidence of personal notice in the local real property records;
j. Verification by affidavit or inspection that no one is in possession of the land (except through the United States);
k. Disclosure in writing to the proposed insured that the forfeiture is in the chain of title;
b. The government secured a criminal conviction of the defendant owner;
c. The court order authorized forfeiture and seizure of the land;
d. All parties (including spouses with marital or community property rights) who are not defendants in a criminal action and who are not executing deeds or releases received personal notice;
e. Notice of the proposed forfeiture was published in a newspaper of general circulation;
f. The United States filed a motion for final order of forfeiture;
g. The court entered a subsequent final order of forfeiture;
h. The “final” (second) order of forfeiture is final and nonappealable;
i. The conviction is final and nonappealable (verify by a letter from the United States Department of Justice or other knowledgeable party);
k. Recordation of certified copies of the indictment and orders of forfeiture in the local real property records;
l. Verification by affidavit or inspection that no one is in actual possession of the land (except through the United States);
m. Disclosure in writing to the proposed insured that the forfeiture is in the chain of title.

Note: You may add additional local requirements here. Please consult with our underwriting personnel in preparing appropriate provisions.
(2) The affiant(s) have not and will not execute any instruments or allow any action that would adversely affect the interest to be insured.

(a) A copy of the resolution passed by __[municipality]__ directing a request be made to the legislature to form ____________ Industrial Development Agency must be furnished to the Company (See Municipal Home Rule Law §40);

(b) Proof of filing with the Secretary of State, within six months of the date of passage of the act creating the IDA, of the certificate stating the name of the IDA, the date it was created and the names and terms of the agency’s members (See General Municipal Law § 856.1(a));

(c) A copy of the IDA’s bylaws should be provided to the Company for review, for a determination of the capacity of the IDA to enter into the proposed transaction, and to ascertain the proper parties to execute the closing instruments;

(d) A copy of the IDA resolution authorizing the transaction to be insured, showing that the resolution was adopted by a majority of the members.

(a) That the terms of sale are beneficial to the state of New York; that the sale does not impair the access of existing frontage of an adjoining owner to the highway (unless the highway is limited-access); and

(b) The Attorney General of the State of New York is required to prepare the conveyance, and must approve the form and manner of the instrument’s execution.

(a) That the proposed mortgagor is an educational institution, as defined in the statute;

(b) That the agreement required by the statute has been entered into, and that the mortgage loan to be insured hereunder is in conformity with the statute; and

(c) That the making of the mortgage will not conflict with specific legislation, trusts, endowments, or other agreements relating to specific funds or properties of the mortgagor.

(d) (in duplicate original) That the transaction is exempt from the mortgage recording tax pursuant to Tax Law § 253.3., by virtue of the mortgage being made to the New York State Dormitory Authority.

(a) Proof is required that the proposed transaction is not prohibited by statute or the bylaws of the Dormitory Authority;

(b) A “certificate of incumbency” and appropriate resolution of the Board of the Dormitory Authority is required, as evidence that the parties executing the mortgage instruments on behalf of the Authority are duly authorized to do so;

(c) Proof is required that the terms, conditions and provisions of agreement between ______________ and the Dormitory Authority do not limit the power of the Dormitory Authority to enter into the transaction; policy will except the terms, conditions and provisions, including the reversionary right, pursuant to Public Authorities Law § 1680.2.(d), upon payment or discharge of the obligation.

(a) That the loan is authorized pursuant to [Urban Renewal Plan][Declaration of Restrictions][ Land Disposition Agreement][Contract of Sale];

(b) That any notices have been given to and approvals obtained from ___[urban renewal agency][municipality]__ required by the [Urban Renewal Plan][Declaration of Restrictions][ Land Disposition Agreement][Contract of Sale] have been given;

(c) Policy excepts the terms, provisions, covenants, conditions and restrictions affecting the property as set forth in the [Urban Renewal Plan][Declaration of Restrictions][ Land Disposition Agreement][Contract of Sale], including any reverter provision.

(a) The Attorney General must approve the form and manner of execution of the instrument to be insured, pursuant to subdivision 18 of Highway Law § 30.

(b) The Commissioner of Transportation must determine that the sale is on terms beneficial to the State of New York; and

(c) The Commissioner of Transportation must execute the closing instrument.
Proof is required that the Governor of New York (pursuant to Unconsolidated Laws §§ 7151 and 7152) and the Governor of New Jersey (pursuant to N.J.S.A. § 32:2-28, ff.) have either approved or not vetoed the proposed transaction, unless the need to do so has been dispensed with.
The requirements of Unconsolidated Laws §6951 must be strictly met.
Consent of the New York State Department of Transportation pursuant to Unconsolidated Laws §6409 and the equivalent New Jersey agency under equivalent statute must be obtained.

{set forth in Urban Renewal Plan dated __/__/__ and filed in the _______ County Clerk’s Office under Index No. ________, as same may have been amended.}

{contained in [Declaration of Restrictions][ Land Disposition Agreement][Contract of Sale][deed] recorded on __/__/__ in __(Liber, Record Liber, Reel)____ (C)p___.}