Bulletin December 04, 2002
 

1. Carbon Monoxide Affidavits Now Required:

On July 30, 2002, the Governor signed Chapter 257 of the Laws of 2002. This law amended Section 378 of the Executive Law by adding a new provision subdivision 5-a. This new provision requires that every one or two family dwelling, condominium unit and cooperative unit constructed or offered for sale after the provision’s effective date (November 27, 2002) “shall have installed an operable carbon monoxide detector of such manufacture, design and installation standards as are established by the [state fire prevention and building code council].” To date, the council has not issued any standards.

However, subdivision 5(d) of Section 378 requires that where a one or two family residence, condominium unit or cooperative unit used for residential purpose is sold, the seller/grantor “shall deliver to the [buyer/]grantee at the time of the conveyance an affidavit that the grantor is in compliance with this subdivision.” Subdivision 5(d) originally applied to smoke alarms, but because of the addition of Subdivision 5(a) to the same Section, subdivision 5(d) probably now applies to carbon monoxide detectors as well. Therefore, effective November 27, prudence requires that a seller delivers both a smoke alarm and a carbon monoxide affidavit to the buyer. However, the carbon monoxide affidavit is not required for recording (yet). The presence or absence of the carbon monoxide affidavit at the closing table will not have an impact on the title. However, as a service to you we have enclosed a form carbon monoxide affidavit. We trust that this is helpful. 

2. Fraud and Forgery Alert:

Please find enclosed an alert sent in by one of our underwriters regarding fraud prevention. Having more involvement from our clients might help prevent future litigation for all of us. Kindly review same.

3. Real Property Transfer Report (Form “RP-5217”) in New York City:

My Bulletin issued October 17 advised that effective January 1, 2003 a State Board of Real Property Services Form RP-5217 is to be required in connection with each deed submitted for recording affecting real property in any of the five counties of the City of New York. Form RP-5217, currently required for deeds being recorded outside of New York City, is commonly referred to as the Equalization and Assessment Form. These changes were made by Chapter 259 of the Laws of 2002, which was signed into law on July 30. The fee to file the RP-5217 in New York City will be $25.00.

The City’s Real Property Transfer Tax Return (“NYC-RPT”) will continue to be required. As of January 1, however, the City Register’s Office (for the Counties of New York, Queens, Brooklyn, and the Bronx) will not charge a fee to file the NYC-RPT when Form RP-5217 is required. It has not yet been determined whether the $25.00 RPT filing fee will still be required by the City Register for the NYC-RPT when Form RP-5217 is not required .

The City Register has advised US that Form RPT-5217 will be required for each instrument transferring title. This will, of course, include deeds, but it will also encompass any leasehold assignment for a unit in a “Qualified leasehold condominium” (such as a unit at Battery Park City) under Real Property Law Section 339-3(12). Form RP-5217 will not be required by the City’s Department of Finance on the transfer of a controlling interest, or by the Register’s Office for the grant of an easement or the transfer of development rights.

The form is in triplicate (it can not be reproduced) you can order this form with the state by calling 518-486-5446 or by Internet at www.orps.state.ny.us.

We have a very limited supply of these forms and have been trying to obtain more, however we are running out of time and have been advised by the state that this is a public service and our clients should order the forms themselves.

 4. N.Y.C. Internet based recording system (“ACRIS”- Automated City Register Information System):

Effective January 2, 2003 the New York City Register is to only accept for recording documents submitted using its new Internet based Automated City Register Information System (“ACRIS”).Documents not recorded for whatever reason by the City Register before January 2, even if submitted for recording prior to that date, will be returned for processing through ACRIS. The submission or re-submission of a document on or after January 2 will require an RP-5217.

Accordingly, effective immediately, when a deed or an assignment of a unit in a Qualified Leasehold Condominium is to be taken for recording, either in connection with a closing or as an accommodation, we must obtain a completed and executed Form RP-5217 and the filing fee.

The City’s Department of Finance will have a single page Form RP-5217; it may be available on the Department’s WEB site next week. However, the City Register will accept the Equalization and Assessment Form currently in use outside of the City. It is assumed but has not been confirmed that the County Clerk for Richmond County will also accept the current Equalization and Assessment Form. Procedures in Richmond County have not been finalized.

Since the City is initiating this new procedure effective 01/02/03 they wish to clean up all previously submitted documents prior to that start date. Accordingly we have been advised that no documents submitted for recording after 12/15/02 will be recorded until after 01/02/03 necessitating the use of the RP-5217 almost immediately. Therefore, beginning 12/01/02 we will require that the new form be submitted with every deed - just in case the document gets kicked back or held over until next year. 

5. Uniform Commercial Code - NYS:

Effective November 15, 2002, each financing statement filed in the Department of State will be stamped with a 15-digit number which number will be required on all further related filings.  The 15-digit number will incorporate the filing date. Amendments to initial financing statements filed with the Department of State prior to November 15 should continue to list both the 6-digit file number and the filling date.

6. Mortgage Recording Tax- NYC:

Please find enclosed a recently published article from the Law Journal.

 7. Choice Abstract Staff Change:

Please be advised that Carol Riecke is no longer with the firm. In her place, please continue to talk with Bob Audette, Phil Fuentes, Rose Gallagher, or myself. As soon as a replacement is hired you will be notified.