Tag Archives: New Jersey

Season 1, Episode 9

April 25, 2022Episodeconservation easements, conservation liens, constructive trust, Cozzoli Machine Company v. Crown Real Estate Holdings, Deed Notices, deed restrictions, Enivornmental, foreclosure, loan default, New Jersey, NJDEP, redevelopment, remediation, unrecorded contractual right, Woodmont Props. v. Twp. of Westamptoncbowness

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Title Nerds co-hosts Mike O’Donnell and Bethany Abele welcomed two partners from our Environmental Practice In Episode 9, Alexa Richman-La Londe and Steve Senior. Alexa and Steve discussed the hot real estate market in New Jersey for commercial/industrial properties, which are frequently environmentally impaired and require remediation. This led to an interesting conversation about the use and mechanics of NJDEP’s Deed Notices that get recorded in land records, including a case where a property owner refused to consent to a Deed Notice (Cozzoli Machine Company v. Crown Real Estate Holdings, Inc., Docket No. A-1733-19, App. Div., Dec. 7, 2021). The discussion led into other environmental documents that show up in title searches (including, other deed restrictions, conservation easements and liens), and the potential obligations of sellers and/or lenders to disclose environmental reports.

Next, Mike interviewed counsel Jorge Sanchez about a case recently heard in the Appellate Division and approved for publication, Woodmont Props. v. Twp. of Westampton, 2022 N.J. Super. LEXIS 13, *2 (N.J. App. Div. Feb. 7, 2022). In this published case, the appeals court affirmed the dismissal of a potential purchaser’s claim for a constructive trust as to foreclosed land, finding that the potential purchaser’s claim could not be sustained because a foreclosure and sheriff’s sale extinguished any unrecorded contractual right to purchase the property. The plaintiff, Woodmont had contracted to purchase a piece of land. The contract required that the seller not encumber the Property more than 80% of its value. Woodmont did not record the contract in the County Clerk’s Office. The following week, the seller gave a mortgage on the land to TD Bank to secure a loan, encumbering the property. The seller defaulted on the loan prior to closing with Woodmont, and TD Bank sought foreclosure of the property. Woodmont did not intervene. While the foreclosure was pending, Woodmont entered into a redevelopment agreement with the Township of Westampton, which was terminated by Westampton when Woodmont failed to secure title to the land. The property was eventually sold to TD Bank at a Sheriff’s Sale. Woodmont subsequently filed suit against Westampton and TD Bank, among others, alleging tortious interference and a breach of the redevelopment agreement. Central to the claim was that the TD mortgage lien was more than 80% of the property’s value. The case was dismissed, and Woodmont appealed. On appeal, the appeals court found that the claims against Westampton failed because the redevelopment agreement was conditioned on Woodmont having title to the property, which it did not. As to TD Bank, the Court first found that even if TD Bank knew of the Woodmount contract, it still had a right to foreclose and need not name Woodmont as the contract was not recorded. To rule otherwise would run contrary to N.J.S.A. 2A:50-30, prior case law. The Court warned that those who did not record their interests ran the risk of their property interest being terminated without being named as defendants in a foreclosure. However, the court did find that Woodmont could have a viable claim against TD Bank for tortiously interfering with its contractual rights with the seller if it indeed knew of the contract .

Season 1, Episode 3

September 28, 2021Episodecommercial real estate, development restrictions, Fidelity National Title Group, Mike Ham, Morning Spotlight, New Jersey, New York, New York Supreme Court, real estate, residential development, restrictive covenant, Southampton, Suffolk, title insurance salespersoncbowness

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Title Nerds hosts Mike O’Donnell and Bethany Abele welcome special guest Mike Ham, the “Coolest Guy in Title Insurance,” to the podcast, along with fellow Riker Danzig attorney Desiree McDonald. In the first segment, the Title Nerds hosts interview Mike Ham, who is a commercial real estate title insurance sales executive with Fidelity National Title Group and hosts a wildly popular podcast, “The Morning Spotlight Podcast,” in which he brings on interesting guests in real estate and other industries. Mike talks about how he started in the title insurance industry, what sparked his podcast, how he helps his clients, and what it takes to be a successful title insurance salesperson.

Then, Riker title team associate Desiree McDonald discusses the case of U & Me Homes, LLC v. Cty. of Suffolk out of New York State (148 N.Y.S.3d 682 (N.Y. Sup. Ct. July 16, 2021)) in which the Court held that a purported restrictive covenant on the property was void and granted the property owner’s motion for summary judgment. In the case, the plaintiff had purchased an undeveloped parcel of land in Southampton that was split-zoned, with both portions permitting residential development. When the plaintiff decided he wanted to build a single-family home on the property, he learned of a developmental restriction that would make his property of zero value. The deed and title search report, however, had not contained any reference to any development restrictions, and indeed, the property had been transferred numerous times previously with no reference to a restriction. The action was brought alleging that the covenant failed to run with the land and that the restriction was against public policy. The Court, very displeased with the County and Town, found no intent for the restriction to run with the land, and said the County and Town had overstepped their bounds and had reversed the role of government. The Town and County then went after the title companies for coverage, and the Court decided that if money was ever to be paid, it should be by the government, not by the insurance companies, something not seen very often in Court’s opinions.

Season 1, Episode 1

May 3, 2021EpisodeALTA, Daniel's Law, litigation, mechanic's liens, mortgage, New Jersey, real estate, residential deeds, title insurancecbowness

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Title Nerds hosts Mike O’Donnell and Bethany Abele are joined by fellow Riker Danzig attorneys Mary Kay Roberts and Mike Crowley. In this inaugural episode, Mike O’Donnell talks to Mike Crowley about the Fifth Circuit’s Hall v. Old Republic case (990 F.3d 933, 5th Cir. Mar. 10, 2021) concerning coverage for mechanic’s liens, and then turns to changes in ALTA’s Owner and Lender Policies. Bethany Abele and Mary Kay Roberts discuss New Jersey’s new “Daniel’s Law” (A1649 P.L.2020 c.125)/S3453 P.L. 2021, c.24) protecting the disclosure of certain personal information of judges, prosecutors and some others, as well as the impact of the Planned Real Estate Development Full Disclosure Act /Homeowner’s Association Fees Corrective Bill (S908 P.L. 2020, c.100), and a bill encouraging the Timely Recording of Residential Deeds (A3396/S1319). Mike O’Donnell, Bethany Abele and Mike Crowley are all members of Riker Danzig’s Title Insurance and Commercial Litigation Practices, while Mary Kay Roberts is a lobbyist and Governmental Affairs partner, heading Riker Danzig’s Trenton office.