Party Whose Property Interest is Recorded After Notice of Pendency is Filed has Constructive Notice of, and is Bound by, Subsequent Proceedings

On December 4, 2024, the Second Department issued a decision in Bank of Am., N.A. v. Burton, 2024 NY Slip Op. 06022, holding that a party whose ownership of property is recorded after a notice of pendency is filed has constructive notice of and is bound by subsequent proceedings, explaining:

Pursuant to CPLR 6501, the filing of a notice of pendency provides constructive notice of an action in which the judgment demanded may affect the title to real property. The statute further provides that a person whose conveyance is recorded after the filing of a notice of pendency is bound by all proceedings taken in the action after such filing to the same extent as if he or she were a party. Here, the record demonstrates that the deed conveying the property to YPL was recorded after the notice of pendency was filed. Therefore, YPL had constructive notice of this action, was bound by all proceedings taken herein as if it were a party, and was not a necessary party.

(Internal quotations and citations omitted).

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