N.Y. Real Property Tax Law § 1194-a: Administration of surplus in connection with tax lien sales

§ 1194-a. Administration of surplus in connection with tax lien sales.

Real property tax liens owned by third parties, including those tax

liens sold pursuant to former title three of article fourteen of this

chapter or pursuant to a special or local law or charter shall only be

enforced in the manner described in this section:

1. Upon written application and the surrender of the tax lien

certificate of sale, a treasurer's deed may be issued vesting in the tax

lien certificate holder an absolute estate in fee, subject to all claims

the taxing jurisdiction or state may have thereon for taxes, liens or

encumbrances, if (a) a New York state licensed real estate appraiser

conducts an appraisal of the property prior to the issuance of the deed

to establish the property's fair market value and (b) the property's

appraised value does not exceed the outstanding amount due to the tax

lien holder. The tax district shall levy the cost of conducting the

appraisal as a lien upon the property to be collected along with any

other pending taxes, liens, or encumbrances; or

2. Notwithstanding any other law to the contrary, after the applicable

redemption period has elapsed, an action to foreclose a tax sale

certificate issued pursuant to former title three of article fourteen of

this chapter or pursuant to a local law or charter may be commenced and

maintained pursuant to this title.

3. Notwithstanding any other law to the contrary, when a tax lien has

been sold to a third party, the lienholder shall send a homeowner

warning notice in the manner provided by section eleven hundred

forty-four of this article at least one hundred eighty days prior to

making application for a treasurer's deed or commencing a foreclosure

proceeding, as the case may be.

4. Notwithstanding the foregoing provisions of this section, in a city

with a population of one million or more, real property tax liens owned

by third parties shall be enforced in the manner provided by the

administrative code of such city.