In New York State, there is no single procedure governing the taking of real property by governmental entities for non-payment of taxes, and the subsequent sale of the property after the taking. New York City commonly uses an In Rem procedure, governed by Chapter 4 of Title 11 of the New York City Administrative Code (§§ 11-401 et seq.). New York City also has an administrative procedure for transfer of tax liens under Chapter 3 of the same Article, which has not been used for many years. The administrative procedure has recently received an overhaul in the City Council, and this method may be used in some future sales.
In the rest of the state, there is a hodgpodge of local law and state statute. The requirements and exceptions found in this area may not conform to the requirements of local law. Underwriting personnel must be familiar with the local laws, if any, which affect a particular tax title transfer.
Resolution is required authorizing the sale of the premises described in Schedule A by the City of New York. If the transaction is not a sale at public auction, then the Company should be informed of the nature thereof, and after proper searches are made, title will be recertified accordingly.
All items on the tax search must be paid or canceled on the tax records of the City Collector.
Transfer of tax lien to be barred
The transfer of tax lien No. __(#)__ held by __(name)__ must be marked as having been barred by proceedings In Rem on the tax records of the City Collector.
Cancellation of transfer of tax lien
The transfer of tax lien No. __(#)__ held by the City of New York must be canceled on the tax records of the City Collector.
Dimensions & distances excepted wo survey
Accurate dimensions and distances will not be insured without a survey satisfactory to the Company showing the tax lot in relation to the present streets.
Application for redemption
Proof is required that there has been no application for a redemption made within two years of the date of the deed into the City of New York.
Terms of deed excepted
The terms, conditions, covenants, agreements, reversions, reservations and annulments of title contained in the deed from the City of New York [recorded in (Liber, RL, Reel)_____, page ______.] or [to be delivered at closing.]