N.Y. Uniform Commercial Code Law § 2-107: Goods to Be Severed From Realty: Recording

Section 2--107. Goods to Be Severed From Realty: Recording.

(1) A contract for the sale of minerals or the like (including oil and

gas) or a structure or its materials to be removed from realty is a

contract for the sale of goods within this Article if they are to be

severed by the seller but until severance a purported present sale

thereof which is not effective as a transfer of an interest in land is

effective only as a contract to sell.

(2) A contract for the sale apart from the land of growing crops or

other things attached to realty and capable of severance without

material harm thereto but not described in subsection (1) or of timber

to be cut is a contract for the sale of goods within this Article

whether the subject matter is to be severed by the buyer or by the

seller even though it forms part of the realty at the time of

contracting, and the parties can by identification effect a present sale

before severance.

(3) The provisions of this section are subject to any third party

rights provided by the law relating to realty records, and the contract

for sale may be executed and recorded as a document transferring an

interest in land and shall then constitute notice to third parties of

the buyer's rights under the contract for sale.