New York Supreme Court, Appellate Division Upholds Transfer Tax Payment in Foreclosure Sale Dispute

The New York Supreme Court, Appellate Division, affirmed a lower court’s order denying a motion to void certain provisions of a sale agreement in a mortgage foreclosure case. The dispute arose when taxpayer, who had successfully bid on a foreclosed property, contested their responsibility to pay transfer taxes as stipulated in the terms of sale agreement. The court upheld the lower court’s decision, reasoning that the transfer tax was not a lien against the property at the time of sale and that the taxpayer had agreed to pay these taxes by executing the terms of sale agreement. [HSBC Bank USA, ...