2023 New York Laws › LIE - Lien › Article 2 - Mechanics' Liens › 31 - Discharge of Liens on Sale of Real Property.

§ 31. Discharge of liens on sale of real property. In case an owner of
  real  property  upon  which  an  improvement  is being or has been made,
  desires to convey or transfer an interest in such real property  or  any
  part  thereof,  and in case lienors having mechanics' liens against such
  real property, or any part thereof, notices of which were filed prior to
  the making of the deposit hereinafter in  this  section  mentioned,  and
  which  said  liens have not been discharged as in this article provided,
  shall, to the extent of at least fifty-five per centum of the  aggregate
  amount  for  which  such  liens  have been so filed, by an instrument or
  instruments in writing, duly acknowledged, designate and  authorize  one
  or  more  persons  to consent to the execution and delivery of a deed or
  deeds conveying said real property or any part thereof, and in case  the
  consent  in writing, duly acknowledged, of such person or persons to the
  execution and delivery of such deed or deeds,  and  which  said  consent
  shall  be  conditioned  for the deposit of a specified sum of money with
  the clerk of such county, shall be filed in the office of the  clerk  of
  the  county  where  such  real  property is situated, together with such
  instrument or instruments of designation, then on the  deposit  of  such
  specified sum with such county clerk all mechanics' liens, judgments and
  attachments,  and  all  claims and liens acquired in any proceeding upon
  such judgments or under such  attachments  against  such  real  property
  shall  from  the  time of such deposit cease to be liens or encumbrances
  upon such real property, and such real  property  shall  thenceforth  be
  free  and  discharged  from  the same, and the same shall thenceforth be
  liens upon such sum so deposited and said county clerk upon such deposit
  being made shall forthwith enter upon the lien docket, indexed with  the
  name  of  such  owner,  the facts relating to such deposit. A deposit of
  money made as prescribed in this section shall be repaid to  such  owner
  or  his  assignee  upon  the discharge or release of all such mechanics'
  liens, judgments and attachments. All deposits of money made as provided
  in this section shall be considered as paid  into  court  and  shall  be
  subject  to  the provisions of law relative to the payment of money into
  court and the surrender of such money by order of the court.  The  court
  shall  in  any  action  brought to foreclose any of such liens or in any
  action brought to recover such deposit or any part thereof,  direct  the
  payment  of such sum so deposited to the persons whose mechanics' liens,
  judgments, or claims secured by attachment shall have  been  established
  upon  the  trial,  and  the  amount  so paid shall be credited upon such
  mechanics' liens, judgments and claims. Upon such deposit being made  as
  hereinbefore   provided  the  lien  of  all  judgments  and  attachments
  affecting such real property, and all claims and liens acquired  in  any
  proceedings upon such judgments or under attachments shall be liens upon
  such deposit. All judgments recovered upon the attachments issued upon a
  claim  which, in whole or in part, is not for materials furnished, labor
  performed or moneys advanced for the improvement of such real  property,
  shall  be  subordinate  as  a  lien  upon  such  sum so deposited to all
  mechanics' liens thereon, and shall also be subordinate to all judgments
  recovered  upon  and  attachments  issued  upon  claims  for   materials
  furnished,  labor  performed  or  moneys advanced for the improvement of
  such real property. In case such consent shall be conditioned  also  for
  the  giving  to  one  or  more  persons  or  a corporation as trustee or
  trustees any other property real or personal then  any  cash  thereafter
  from  time  to  time tendered by such trustee or trustees to such county
  clerk shall be received and held by such county clerk as though the same
  were part of the specified sum of money for the deposit  of  which  such
  consent  was  conditioned,  and for the same purposes and subject to the
  same provisions as in this section provided therefor.