2023 New York Laws › RPP - Real Property › Article 9 - Recording Instruments Affecting Real Property › 291-E - Exceptions, Reservations and Recitals Referring to Unrecorded Conveyances and Contracts for Sale of Real Property.

§ 291-e. Exceptions, reservations and recitals referring to unrecorded
conveyances  and  contracts  for  sale of real property. 1. This section
applies to any language, contained in a conveyance of real  property  in
this  state, which (a) excepts or reserves a part or any or all parts of
the described premises which have  been  or  may  have  been  previously
conveyed,  or  previously  contracted  to  be  sold or exchanged, by the
grantor or by a previous owner, or  (b)  otherwise  indicates  that  the
premises  or  some  part  or  parts  thereof  have been or may have been
previously conveyed or that  a  contract  has  been  or  may  have  been
previously  made  for  the sale or exchange of all or some part or parts
thereof, or (c) indicates that only such part of the premises  described
is  intended to be conveyed as the grantor, or a previous owner, has not
previously  conveyed  or  has  not  previously  contracted  to  sell  or
exchange,  and, in any of the cases described in this subdivision, fails
to identify the premises previously conveyed or contracted to be sold or
exchanged in any other manner than by indicating that  a  conveyance  or
contract  has previously been made or indicating the fact or possibility
that one or more conveyances or contracts have been  or  may  have  been
previously made.
2.  An  exception, reservation or recital described in subdivision one
of this section is (a) void as against a subsequent  purchaser  in  good
faith  and  for a valuable consideration, who has no other notice of the
identity of the premises to which it refers, and (b) ineffective to give
notice to such  subsequent  purchaser  of  the  previous  conveyance  or
contract  so  referred  to  or  create  any duty of inquiry with respect
thereto, unless, in either case, such previous conveyance or contract is
sufficient to identify the premises to which the exception,  reservation
or recital refers and is recorded as provided in this article before the
recording  of  the instrument by which the subsequent purchaser acquires
his estate or interest.
3. For the purposes of this section,
(a) "Purchaser"  includes  a  person  who  purchases  or  acquires  by
exchange  or  contracts  to  purchase  or  acquire  by exchange the same
premises or any portion  thereof  or  estate  or  interest  therein,  or
acquires by assignment the rent to accrue from tenancies or subtenancies
thereof in existence at the time of the assignment.
(b) Contract for sale includes an option to purchase or lease.
(c)  A  lease,  or a contract or option, is recorded when a memorandum
thereof is recorded as provided in section two hundred  ninety-one-c  or
section two hundred ninety-four of this chapter.
(d)  The  recording  of  a  contract or option, or memorandum thereof,
pursuant  to  section  two  hundred  ninety-four  of  this  chapter,  is
effective  up  to  and  including  the thirtieth day after the day fixed
therein for the conveyance of title, or the thirtieth day after the last
day fixed therein for the exercise of the option, provided,  that  if  a
written  declaration  of the exercise of the option has been recorded as
provided in subdivision seven of section two  hundred  ninety-four,  the
recording  of the option is effective to and including the thirtieth day
after the last day fixed  pursuant  to  the  option  agreement  for  the
conveyance  of  title or the execution and delivery of the lease, as the
case may be. An agreement extending  the  time  for  the  conveyance  of
title, acknowledged or proved, and certified, in the manner to entitle a
conveyance  to  be recorded, may be recorded, and the recording shall be
effective up to and including the thirtieth day after the day  fixed  by
such agreement for the conveyance of title.
4.  This  section  shall  not  impair  the  effect  of  an  exception,
reservation or recital to limit any  warranty  of  the  grantor  in  the
conveyance in which it is contained.
5.  This  section  shall  apply  where  the  instrument  by  which the
subsequent purchaser acquires his estate or interest is executed  on  or
after  September  first,  nineteen  hundred sixty, except that where the
conveyance containing an exception, reservation or recital described  in
subdivision  one  of  this  section was executed before September first,
nineteen  hundred  sixty,  this  section  shall  apply  only  where  the
instrument  by  which  the  subsequent  purchaser acquires his estate or
interest is executed on  or  after  September  first,  nineteen  hundred
sixty-one.