Are NYC Housing Preservation and Development (HPD) violations lien on property? Do they affect title?

Question:

Hello,

This property has > 300 (HPD (NYC Housing Preservation and Development) violations including Vacate Order. I am looking for how much the lien HPD had been placed on this property. Your report included some additional owners personal information as well including some judgments but I have no clue what are they.

Thanks,

Mark

 

Answer:

I am not privy to NY real estate laws but can have someone from our administration department assist with this question.

Cameron S.,

Customer support team

 

Client Response:

Yes please,

If you are familiar with NYC real estate laws, you will see that HPD lien can amounts to > 200K with interest and fine all included.
Thanks,
Mark
Answer:
Dear Mark,
I have been assigned to this matter for handling.  If the notice(s) of violations were not properly recorded against the property or the owner to make them public records, they will not appear on our reports.
I will research this issue for you at no extra charge.  In the meantime, please email to me whatever information you have.  Case law was established in NYC in 2017 that addresses the issue but whether the violations constitute a lien again the property and/or the owner depends on the relevant facts.
If we determine that this is information that should have been provided to you, I will be authorized to issue a full refund immediately. Thank you for your patience and your business.
Thank you,
Jeannie B.
Client Services
Client response:

Hi Jeannie –

Thanks for looking into this, I am a little disappointed as I am trying to find the total amount of lien against this property. This is the first time I am using your service, if I can determine your title search is as good as official title insurance’s search, then I would like to use your website more.
Attached below is HPD violation details.
https://hpdonline.hpdnyc.org/HPDonline/select_application.aspx  search for 339xx49 Fenton Ave, Bronx 10469.
Answer:
Hello Mark,
I completely understand and it sounds frustrating.  I will make sure the research is completed on our end tomorrow.  Please note that we have personnel in every county and I am happen to me on Mountain time in Arizona.  As soon as I get the results, I will email you with the information immediately.
We have been serving the globe for all property and property owners in the United States and its territories for well over a decade.  We remain in business with an ever-growing clientele because our priority is not just “satisfied” clients, but happy and repeat clients.  Thank you again.  I will be back in touch with you tomorrow.
Thank you,
Jeannie B.
Client Services
Follow up answer:
Hi Mark,
The Notices of Lis Pendens on the Property Lien Report (page 4 of the property report) sent to you as part of the package you ordered may relate to the violations to which you are referring and likely constitute a lien on the property.  Notice of Lis Pendens means “notice of litigation pending.”  When litigation is pending (in this case possibly related to the alleged violations to which you referred) it means that the outcome of the litigation may or may not affect the title.  More importantly, it usually means that the property cannot be bought/sold with a “clean title” as long as litigation that affects the property is pending.  These are the “generally rules” and vary depending on the given state.
If the court decides in favor of the plaintiff, the judgment amounts will likely constitute a lien on the property for the judgment balance.  However, if the court decides in favor of the defendant, the case may not affect the property.  We will not know that until after the litigation has concluded.
The reason that the profile report for Geoffrey Sinnkler was included in your package is because he is also listed on the title as an owner or party of interest and any personal liens that he has against him individually may also affect the title for property he owns, depending on the state and the type of lien.
You may order copies of the lis pendens documents through our abstract service, but I’m trying to get authorization to obtain copies as a courtesy to you because I understand this has been a frustrating situation.  Also note that a release was recorded on September 24, 2019 so that may be a release of the lis pendens and/or it may be a release of another type of lien.
Our clients use our service as a starting point for research purposes to help them make decisions about whether or not to proceed with a property purchase/sale and open escrow, or to assist with a probate or other real estate matter.  We service mostly real estate investors, law firms, lenders and brokers, but also the general public.  We do not close transactions and issue escrow policies.
We recommend you consult with an attorney to review all the documents and other relevant information so that you can make an informed decision about what you should or should not do. Please let me know if you have additional questions, need more information or would like a referral to a real estate attorney in your area.
Attached is a courtesy copy in PDF format of the Memorandum of Contract between the LLC and Sinckler.  It appears that Geoffrey Sinnckler is still listed as an owner because he may still be a party of interest, depending on the terms of their contract, i.e., when loan amounts, if any, are paid in full.  There is a variety of potential scenarios.
Regarding the notices of lis pendens reflected on the report, copies of those notices are not available digitally which is why we also have abstractors in every county.  Our company subscribes to hundreds of digital databases with cities, counties and states and those databases together with our analytics company data are searched when we research and compile our reports.  Where documents are not available digitally, we offer abstract services and that service is a separate charge.
If you consult a real estate attorney about the subject property, he/she will likely be able to assist you with obtaining and reviewing whatever additional documentation is required for whatever your purpose is.
Please let me know if you have questions or need more information.
Thank you,
Jeannie B.