Practice point: A person whose conveyance or encumbrance is recorded after the filing of a notice of pendency is bound by all subsequent proceedings, as if he were a party, pursuant to CPLR 6501.
Students should note that, to cut off a prior lien, such as a mortgage, the purchaser or encumbrancer must have no knowledge of the outstanding lien and must win the race to the recording office.
Case: DLJ Capital Mortgage, Inc. v. Windsor, NY Slip Op 07886 (2d Dept. 2010)
Here is the decision.
Tomorrow’s issue: Motion practice.
