Sheriff’s execution sales are held in New York where a judgment creditor executes against real property. The New York State Land Title Association’s Recommended Practices, G-13 deals with sheriff’s sales. As a general rule, the Company does not insure title passing through an execution sale, unless every particular has been reviewed by counsel.
Title passing through Sheriff’s sale
Company is advised that title will be passing through a Sheriff’s execution sale. Proof of the following must be submitted for consideration, and additional exceptions may be raised:
(a) Jurisdiction over the defendant in connection with the judgment executed upon must have been obtained by personal delivery of the initiatory papers and pleadings on the defendant, or where the defendant actually appeared or answered the complaint.
(b) The court file must be reviewed, and there must be no defects in service, pleading or procedure.
(c) Proof of due procedure in connection with the conduct of the sale;
(d) Either there are no other judgment creditors and no subordinate liens, or exception will be taken as to all of same that exist, despite the effect of any statute which may deem same to be cut off.
(e) The judgment debtor must have been the owner of the premises at the time of execution, and proof is required that the judgment debtor was alive at the time of execution.
(f) The judgment creditor cannot be a mortgagee of the premises.
(g) The purchaser must be in possession of the premises, and the debtor must not be in possession of all or any part of the premises.
(h) Proof as to the actual value of the premises must be submitted, as well as of the equity of the debtor in the premises (Note: if the premises was the debtor’s personal residence, the debtor’s equity must be substantially in excess of $10,000.00).
(i) There must be no pending appeal of the judgment, and the time to appeal must be expired.
(j) proof is required that the judgment was not previously satisfied.
(k) coverage under the policy will be limited to the amount paid. Company does not assume any responsibility to insure for an amount greater than the amount paid.