HPD Building Lien Remains After Building Sale

December 1, 2008

LVT Number: #20859

HPD commenced an enforcement proceeding against prior landlord in 2004. While the case was pending, the building was sold to new landlord. Then, in 2006, HPD obtained a judgment for civil penalties, which resulted in a lien against the building. New landlord asked the court to remove the judgment because the civil penalties were imposed against prior landlord, not new landlord. The court ruled against landlord. New landlord appealed and lost. When HPD gets a court ruling for civil penalties, a judgment can be entered against the building as a lien.

HPD commenced an enforcement proceeding against prior landlord in 2004. While the case was pending, the building was sold to new landlord. Then, in 2006, HPD obtained a judgment for civil penalties, which resulted in a lien against the building. New landlord asked the court to remove the judgment because the civil penalties were imposed against prior landlord, not new landlord. The court ruled against landlord. New landlord appealed and lost. When HPD gets a court ruling for civil penalties, a judgment can be entered against the building as a lien. And HPD filed a notice of pendency prior to the sale of the building. So new landlord is bound by the judgment and lien to the same extent as if he were a party to the enforcement proceedings.

HPD v. Living Waters Realty, Inc.: NYLJ, 11/5/08, p. 43, col. 1 (App. T. 1 Dept.; Davis, JP, Schoenfeld, Heitler, JJ)

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