Changes in Lot Number: When Does a Purchaser Have a Duty to Inquire?

Block and lot indexes prevalent in New York City were designed to make title searches simpler than those necessary under the grantor-grantee index system prevalent in many other areas of the state and country. Suppose, however, block and lot numbers change over time. To what extent are purchasers on notice of deeds recorded under a block and lot number different from the one prevalent at the time of purchase? The First Department recently faced that issue in Akasa Holdings, LLC v. 214 Lagayette House, LLC, NYLJ 9/5/19, p. 22., col. 1, and concluded that at least when the record under the current lot number reveals unexplained breaks in the chain of title, purchasers have a duty to inquire about deeds recorded beyond the current block and lot number.

The Akasa Facts

The case concerned a 1981 easement across 57 Crosby Street in favor of 214 Lafayette Street, but the story starts earlier. In 1967, the Epsteins purchased 216 Lafayette Street which, at all times, has been designated as Block 482, Lot 28. In 1971, the Epsteins purchased three neighboring parcels — 214 Lafayette Street, 55 Crosby Street, and 57 Crosby Street. 55 Crosby and 214 Lafayette were designated at Lot 30 in the same block, while 57 Crosby was designated as Lot 9. While the Epsteins owned all three parcels, 57 Crosby was merged into Lot 30, and the Lot 9 designation was discontinued. Then, in 1979, the Epsteins sold all four parcels to Spacemakers. The deed was indexed against Lot 28 and Lot 30, but not against Lot 9, which was not then in use.