This week we once again wish to highlight another recent decision where the Court was forced to sort through allegations of fraud, forgery and adverse possession to render its decision to Quiet Title to a Kings County property.
The relevant facts of, and a link to, the case are set forth below.
In Amzalag v. ZBT Holdings Inc., 2023 NY Slip Op 30593, decided February 28, 2023, the Supreme Court, Kings County, held that the Plaintiff’s signature on a deed executed in 2005 was forged and, therefore, that deed and subsequent deeds further conveying the property were void ab initio. The Court directed the City Register’s office to strike those deeds from the record. The current owner’s claim of title by adverse possession was denied because a “claim of right”, an element to establish title by adverse possession, cannot be asserted when title is acquired as a result of a forgery. The Court also held that a mortgage executed in 2006, held by an assignee and refinanced, was void ab initio and directed the City Register’s office to record the Court’s ruling against the property’s block and lot. According to the Court, “a forged deed is void ab initio and, as such, any mortgage or encumbrance on real property based on a forged deed is also void (see Faison v. Lewis, 25 NY3d 220 [2015]).”
The Court further ruled that an inquest was required to determine the amount of any rents and profits due to the Plaintiff. This decision is posted in the link below.
https://www.nycourts.gov/reporter/pdfs/2023/2023_30593.pdf
This case is another reminder for Attorneys and Title Companies alike to be ever vigilant when faced with a series of No-Consideration Deeds in the chain of title and to be on guard against the possibility of a fraudulent deed transfer. We also recommend that your clients utilize available services offered by your local City Register or County Clerk’s offices which alert owners to any documents recorded against their properties as a means of catching fraudulent transfers as quickly as possible.
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