The Stranger to the Deed Rule

In 1987, a unanimous Court of Appeals reaffirmed the vitality of the “stranger to the deed” rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Estate of Thompson v. Wade, 69 NY2d 570. In justifying the rule despite its obvious frustration of the parties’ intention, the court emphasized that grantors can readily avoid frustration of intent by arranging a direct conveyance to the intended beneficiary of the easement. Daniello v. Wagner, 2023 WL 8245882, decided by the Second Department on November 29^th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals’ message, suggesting that the rule needs re-examination.