Relates to the judgment lien on real property in an action upon a money judgment; repealer

BILL NUMBER:S4585A

Title of bill

An act to amend the civil practice law and rules, in relation to the judgment lien on real property in an action upon a money judgment and to repeal certain provisions of such law relating to levy upon real proper- ty

This is one in a series of measures being introduced at the request of the Chief Administrative Judge upon the recommendation of her Advisory Committee on Civil Practice.

We propose an extension of the judgment lien on real property in an action upon a money judgment from 10 years to 20 years. We believe that the existing statutory 20-year enforceable life of a money judgment award and the mere 10-year viability of the lien on real property resulting from the money judgment are completely at odds and can result in a serious hardship on an original creditor with a valid judgment in a lien-gap scenario. The 10-year life of a lien, while created as a matter of public policy to facilitate property conveyances, is not justified when considered in the context of the difference between the two statutes.

Our Advisory Committee has followed with great interest the decisions in the case of Gletzer v. Harris, 12 N.Y.3d 468 (2009) aff'g, 51 A.D.3d 196 (1st Dept. 2008). In that case, the Court of Appeals held that a renewal lien becomes effective when granted by Supreme Court, where additional lenders relying on the public record acquired rights in the property during the lien gap that occurred during the pendency of the original creditor's action, which was brought to renew the judgment under CPLR §50l4 during the tenth year to extend the lien for an additional 10 years but not decided until after the expiration of the lien. This meas- ure is intended to resolve the lien-gap problem and addresses the situ- ation where the lien has expired but the judgment has not.

We recognize that these amendments necessitate the repeal of CPLR §5235, since that statute was designed to eliminate the problems of execution on a judgment that arise during the second 10 years while the still valid judgment may not be a lien on real property (see, CPLR §5236(a) (preventing the sale of the realty on execution where the lien is expired)). However, the remedy under §5235, allowing the sheriff to file the notice of levy, must remain available for 10 years from the effec- tive date of this measure in those situations where either the judgment has been docketed but the lien obtained on the judgment has expired prior to the effective date of this measure or where the judgment credi- tor issues the execution close to the expiration of the 20-year lien period to prevent the lien from expiring while the sale of the real property takes place. Thus, this measure includes a provision in its effective date section to ensure that §5235 remains available in those instances to provide the appropriate notice on the public record.

This measure would have no fiscal impact on the State. It would take effect on the first of January next succeeding the date on which it shall have become law; except that section three of the measure would take effect ten years after such effective date provided that any execution issued pursuant to §5235 before such date shall remain in effect.

2010 LEGISLATIVE HISTORY: OCA 2020-58