Case Name: Chappo & Company, Inc., Appellant, v. Allan Riley Company, Inc., Respondent
Court: New York Supreme Court, Appellate Division
Jurisdiction: New York
Decision Date: 1996-03-26
Citations: 225 A.D.2d 468
Docket Number: 
Parties: Chappo & Company, Inc., Appellant, v Allan Riley Company, Inc., Respondent.
Judges: 
Reporter: Appellate Division Reports
Volume: 225
Pages: 468–468

Head Matter:
Chappo & Company, Inc., Appellant, v Allan Riley Company, Inc., Respondent.
[639 NYS2d 383]

Opinion:
Plaintiff, an unlicensed real estate broker, cannot circumvent the licensing requirement of Real Property Law § 442-d by characterizing the loan it allegedly negotiated on defendant's behalf as a "leasebacked note transaction". The documentary evidence clearly establishes that a mortgage was the dominant security under the loan allegedly negotiated by plaintiff, and the assignment of rents incidental. Accordingly, the IAS Court properly determined that plaintiff was acting as a real estate broker within the meaning of the statute and had to be licensed as such to maintain this action. Concur — Rosenberger, J. P., Ellerin, Rubin and Nardelli, JJ.