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Real Property Law

By NYRE Staff
February 01, 2023

Tax Deed Invalid for Inadequate Notice

BCB Community Bank v. Zazzarino, 2022 WL 16954586, AppDiv, Second Dept. (memorandum opinion)

In an action by mortgagee for a judgment declaring a tax deed void, the holder of the tax deed appealed from Supreme Court's judgment declaring the deed void and directing the Nassau County Clerk to cancel the deed. The Appellate Division affirmed, holding that the mortgagee did not receive proper notice of its right to redeem.

Forest Glen executed a mortgage in favor of Indus in 2010. In 2015, T11 Funding purchased tax lien certificates for unpaid real estate taxes on the property. In April 2018 Indus merged with BCB. In November 2018, T11 mailed a notice to redeem to Indus at the two addresses on record for Indus, and to "BCB Indus American Bank" at a third address, which was a branch office of BCB. The two mailings to the addresses on record were returned to T11 as "Not Deliverable as Addressed." The property was not redeemed during the redemption period, and the city treasurer issued a tax deed conveying the property to T11. Two months later, BCB brought this action for a judgment declaring that the tax deed was void and BCB's mortgage was in full force and effect. Supreme Court granted BCB's summary judgment motion, concluding that due process required T11 to ascertain the address of BCB's headquarters when sending the notice to redeem. T11 appealed.

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