N.Y. LIE Law § 31 — New York Code / Act LIE / Article 2 / Section 31
Discharge of liens on sale of real property
Status: in_force

§ 31. Discharge of liens on sale of real property. In case an owner of\nreal property upon which an improvement is being or has been made,\ndesires to convey or transfer an interest in such real property or any\npart thereof, and in case lienors having mechanics' liens against such\nreal property, or any part thereof, notices of which were filed prior to\nthe making of the deposit hereinafter in this section mentioned, and\nwhich said liens have not been discharged as in this article provided,\nshall, to the extent of at least fifty-five per centum of the aggregate\namount for which such liens have been so filed, by an instrument or\ninstruments in writing, duly acknowledged, designate and authorize one\nor more persons to consent to the execution and delivery of a deed or\ndeeds conveying said real property or any part thereof, and in case the\nconsent in writing, duly acknowledged, of such person or persons to the\nexecution and delivery of such deed or deeds, and which said consent\nshall be conditioned for the deposit of a specified sum of money with\nthe clerk of such county, shall be filed in the office of the clerk of\nthe county where such real property is situated, together with such\ninstrument or instruments of designation, then on the deposit of such\nspecified sum with such county clerk all mechanics' liens, judgments and\nattachments, and all claims and liens acquired in any proceeding upon\nsuch judgments or under such attachments against such real property\nshall from the time of such deposit cease to be liens or encumbrances\nupon such real property, and such real property shall thenceforth be\nfree and discharged from the same, and the same shall thenceforth be\nliens upon such sum so deposited and said county clerk upon such deposit\nbeing made shall forthwith enter upon the lien docket, indexed with the\nname of such owner, the facts relating to such deposit. A deposit of\nmoney made as prescribed in this section shall be repaid to such owner\nor his assignee upon the discharge or release of all such mechanics'\nliens, judgments and attachments. All deposits of money made as provided\nin this section shall be considered as paid into court and shall be\nsubject to the provisions of law relative to the payment of money into\ncourt and the surrender of such money by order of the court. The court\nshall in any action brought to foreclose any of such liens or in any\naction brought to recover such deposit or any part thereof, direct the\npayment of such sum so deposited to the persons whose mechanics' liens,\njudgments, or claims secured by attachment shall have been established\nupon the trial, and the amount so paid shall be credited upon such\nmechanics' liens, judgments and claims. Upon such deposit being made as\nhereinbefore provided the lien of all judgments and attachments\naffecting such real property, and all claims and liens acquired in any\nproceedings upon such judgments or under attachments shall be liens upon\nsuch deposit. All judgments recovered upon the attachments issued upon a\nclaim which, in whole or in part, is not for materials furnished, labor\nperformed or moneys advanced for the improvement of such real property,\nshall be subordinate as a lien upon such sum so deposited to all\nmechanics' liens thereon, and shall also be subordinate to all judgments\nrecovered upon and attachments issued upon claims for materials\nfurnished, labor performed or moneys advanced for the improvement of\nsuch real property. In case such consent shall be conditioned also for\nthe giving to one or more persons or a corporation as trustee or\ntrustees any other property real or personal then any cash thereafter\nfrom time to time tendered by such trustee or trustees to such county\nclerk shall be received and held by such county clerk as though the same\nwere part of the specified sum of money for the deposit of which such\nconsent was conditioned, and for the same purposes and subject to the\nsame provisions as in this section provided therefor.\n