PROPERTY LAW & DESCRIPTIONS — NY RE CHEAT SHEET

REAL PROPERTY FUNDAMENTALS

What counts as real property in NY?

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Fixture Test (4-part):

Physical annexation to property?

Adaptation to use of property?

Intent of annexer?

Agreement of parties?

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LEGAL DESCRIPTIONS IN NY

Dominant method: Metes and bounds (NY default) Alternative: Lot and block (subdivisions) Assessment: Tax map SBL (Section-Block-Lot)

Water Rights:

• Riparian: Borders navigable water; ordinary high water mark (tidal); littoral rights (non-tidal)

• Appurtenances to land; does NOT include groundwater in most cases

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FORMS OF OWNERSHIP & TITLE

Ownership Types

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Co-op vs. Condo

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NY Deeds (Most to Least Common)

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Recording: County Clerk; race-notice statute (NY: first recorded wins if good faith + valuable consideration)

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TITLE INSURANCE & TAXES

Title Insurance:

• Owner's policy: Buyer purchases (one-time); protects equity

• Lender's policy: Borrower pays; protects lender's interest

Transfer Taxes (SELLER pays unless stated):

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PROPERTY ENCUMBRANCES

Common NY restrictions:

• Landmark designations (NYC; Historic Preservation Commission approval)

• Air rights / TDRs (separable; valuable in Manhattan)

• Co-op board approval (subjective; subjective standard in law)

• Easements, covenants, liens, mortgages

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FIXTURE vs. CHATTEL (Common Test Items)

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Rule: When in doubt, BILL OF SALE = PERSONAL; DEED = REAL PROPERTY

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WATER RIGHTS & BOUNDARIES

Riparian Rights (Bounded by Water):

• Ordinary high water mark = boundary line (tidal)

• Right to reasonable use (NY law)

• Appurtenance to land (transfers with deed)

Non-riparian: No direct water access; no riparian rights

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QUICK REFERENCE: METES & BOUNDS vs. LOT & BLOCK

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Category	Classification	Key Rule
Land + buildings	Real property	Deed transfer
Co-op shares	Personal property	Stock certificate + proprietary lease (UCC)
Condo units	Real property	Fee simple + undivided common interest
Fixtures	Real property	Method, adaptation, intent analysis
Air rights / TDRs	Appurtenances	Transferable, distinct value
Form	Parties	Death	Transfer	Key NY Note
Fee simple	Any	Probate	Deed	Absolute or defeasible
Tenancy in common	2+	Probate (default)	Individual deed	Default for unmarried
Joint tenancy	2+	JTWROS	Auto-transfer	4 unities: time, title, interest, possession
Tenancy by entirety	Married only	JTWROS	Requires both	Not probate; divorce voids
Life estate	Named holder + remainder	To remainderman	Cannot extend beyond life	Holder pays taxes/maintenance
Aspect	Co-op	Condo
Ownership	Stock + proprietary lease (personal property)	Fee simple unit (real property)
Financing	Share loan (UCC); underlying building mortgage	Standard mortgage on unit
Board approval	Required (subjective; 30–90 days typical)	Not required; market-driven
Flip tax	Seller pays to reserve fund	None
Mortgage recording tax	Underlying building only	Borrower pays ~1.8% (NYC)
Deed Type	Warranty	When Used	Key Gotcha
Bargain & sale	None (most common in NY)	Default conveyance	Implies possession; risky for buyer
Full covenant & warranty	Full (grantor warrants title)	Premium; best for buyer	Rare; grantor liable for defects
Quitclaim	None; relinquishes interest only	Ex-spouse; unclear title	High risk; no recourse
Referee's deed	None; foreclosure/judgment	Court-ordered	As-is; no recourse
Executor's deed	Limited (estate authority)	Probate transfer	Estate only; not personal warrant
Tax	Rate	Cap	Payor	Example
NYS	0.4% ($4/$1,000)	None	Seller	$400K sale = $1,600
NYC	1.0% if <$500K; 1.425% if ≥$500K	None	Seller	$600K = $8,550
Mansion	1.0%	None	BUYER	$1.5M residential = $15,000 (buyer)
Mortgage recording	~1.8% (NYC); ~0.5% upstate	None	Borrower	$400K loan in NYC = ~$7,200
Item	Real or Personal?	Exam Tip
Built-in dishwasher	Real (adapted)	Part of real estate
Window AC unit	Personal (removable)	Belongs to tenant or chattel owner
Chandelier (hardwired)	Real (annexed)	Stays with building
Painting on wall (hung)	Personal	Can be removed
Plumbing fixtures	Real (adapted)	Cannot remove
Method	Description	Used When
Metes & bounds	Compass directions + distances; "beginning at..."	Irregular plots; NY default