By Tracking Down All Parties to Re-Sign Closing Documents, Adam Leitman Bailey, P.C. Successfully Records Deed Without the Need for Costly Litigation
Oftentimes the city register fails to record a deed, which dangerously leaves lenders and title companies vulnerable to potential claims by junior lienors. A large title company learned that it was seemingly defenseless against a deed that was rejected for recordation by the city register and immediately came to Adam Leitman Bailey, P.C. for help.
Upon receiving the claim, Adam Leitman Bailey, P.C. commenced an action in Supreme Court, to enable the filing of a lis pendens on the property, and then undertook necessary first steps towards recording the deed.
During the initial investigation, it was discovered that three different contracts of sale existed for the transaction: (1) a contract between the seller and the buyer at a purchase price of $525,000, which was being held by the title insurance company (2) a contract between the seller and a third party with the same last name as buyer at a purchase price of $429,000, which was being held by the closing attorney for buyer, and (3) a contract between the seller and the broker at a purchase price of $429,000, which was being held by the bank attorney from the closing. Also found was an assignment between the broker and the buyer for payment of $96,000 to the broker. The seller’s attorneys were not aware of any assignment or any payment made in connection therewith.
It was clear after a thorough investigation that there may have been a fraud in connection with the initial sale transaction.
Adam Leitman Bailey, P.C. was able to uncover a fraud and alert all affected parties to said fraud, BUT, notwithstanding same, was able to achieve successful recordation of the deed WITHOUT extensive and costly litigation, which is what the attorneys at the firm are trained to achieve.
The key attorneys, who handled this matter, were all in the litigation department at Adam Leitman Bailey, P.C. Partners Adam Leitman Bailey and Colin E. Kaufman oversaw the entire action from start to finish. Associate Jackie Halpern analyzed all versions of the contract of sale, tracked down and conferred separately with all parties from the closing, conferred with the city register’s office, traveled to visit the buyers, sellers, and brokers in person to procure their respective signatures and discuss the transaction, and personally brought the deed with accompanying transfer documents to the city register to ensure successful recordation.
This action was commenced in August 2007 and the deed was successfully recorded at the office of the city register, County of Kings, on December 6, 2007.