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G-1

BUILDING DEPARTMENT NOTICE OF PENDENCY (LIS PENDENS)

A Notice of Pendency to enforce Building Department violations will be disregarded if a search shows that the violations which are the subject of the notice of pendency are no longer pending.

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G-2

DEED FROM FIDUCIARY - CONSIDERATION

Where a deed from a fiduciary recites only a nominal consideration no exception as to adequacy of consideration will be raised if the deed is on record for more than 10 years.

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G-3

DELIVERY QUESTION

Where there is a time lapse between the date of a deed and the date of its recording, no objection will be raised where the deed has been on record for more than ten (10) years. If the deed has been on record for ten (10)years or less, the period search in a Surrogate's office should be completed against the grantor from the date of the instrument to the date of recording in the county where the grantor resides and in the county where the property is situated. If no death was found then the question should be passed unless the grantee, or some one connected with him, was still in title and more definite information could therefore be obtained, or unless the death of the grantor is definitely known.

The question of delivery should not be raised where the interval between the date of the deed and the recording date thereof was less than thirty (30) days unless there was affirmative knowledge of the death of the grantor prior to recording. Under this 30-day period no Surrogate's search will be made.

The question of delivery should not be raised where the interval between the date of the deed and the recording date thereof was greater than thirty (30)days where the public record evidences a purchase money mortgage to an institutional lender or the seller(s) which is dated contemporaneously with the deed.

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G-4

EXPIRED CITY OF NEW YORK UNSAFE BUILDING NOTICE OF PENDENCY (LIS PENDENS)

In the City of New York, an Unsafe Building Notice of Pendency filed for more than one year may be passed if:

1. Within one year from its filing a final judgment has not been entered in said proceeding directing the demolition of the structure; and
2. Searches have been made for the period of one year from the date of filing of the Unsafe Building Notice with nothing found:

1. against the name of the record owner(s) of the property at the time of the filing of the Notice of Pendency, or any person or entity who acquired title to the premises during said year, for money judgments or warrants docketed in favor of the City of New York Building Department or Department of Housing Preservation and Development;
2. against the subject premises for charges fees or expenses posted in the office of the Department of Buildings related to the Unsafe Building Notice;and
3. against the subject premises for Relocation Liens filed by the Commissioner of Housing Preservation and Development for relocation services in connection therewith.

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G-5

FINANCING STATEMENTS UCC-1 (s)

Financing Statements will be passed where they are on file for more than five(5) years and there was a change of ownership or there would be a change on the closing. Where, however, the transaction was to insure a mortgage and there was to be no change of ownership, then the Financing Statements will be expected unless they are on file for more than five (5) years and 30 days and have not been renewed.

Exception: Financing Statements are effective until terminated when filed against a cooperative apartment unit and/or the shares and interest of a leasee under a proprietary lease of a cooperative corporation.

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G-6

GUARDIAN CONVEYANCE BY A GUARDIAN - MENTAL HYGIENE LAW

Note: The entire structure of the Mental Hygiene Law was changed effective April 1, 1993. Section 77 and 78 which dealt with conservators and committees was repealed on the same date that Section 81 became effective.

The persons acting as conservators or committees may continue to perform under the existing orders until modified or abrogated by a court. Any other statutes referring to conservators or committees are deemed to refer to guardians.

Among the things which have to be considered:

1. The courts which have jurisdiction under the new law are:
   1. In New York City - the Supreme Court
   2. Outside New York City - the County Court
   3. The Surrogates Court where a guardian is needed to receive money or property.
2. There are provisions for hearings and trials where necessary. The persons who may be involved include:
   1. The affected party.
   2. Members of the family.
   3. Heirs designated by will.
   4. A Court appointed Evaluator.
   5. In certain circumstances, a Special Guardian.

The affected party has the right to have counsel.

The petitioner has the burden of proof by clear and convincing evidence of the necessity to appoint a guardian or co-guardians.

The basic policy of law is to provide for the least restrictive order possible.

There is provision for a bond unless waived.

The appointment of a guardian does not create the presumption that the incapacitated party is not required to consent to property transfer.

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G-7

INFANTS, INCOMPETENTS - DEED BY

Deeds executed by guardians, committees or attorneys in fact in behalf of their respective wards, incompetents or principals, instead of in their names by such representatives will not be deemed an objection to title where the instrument recites the source of authority for the act and the instruments have been properly indexed on the record against the respective infant,incompetent or principal.

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G-8

LIMITED PARTNERSHIP

When a limited partnership takes title to real estate, the failure to commence or to complete the publication required by the Partnership Law before title passes to the partnership may be disregarded if the publication is ultimately commenced and completed.

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G-9

MERGED MORTGAGE & FEE

A mortgage may be disregarded where the mortgage and fee title came into the same ownership of record more than 10 years ago without any recital of non-merger, where such owner is no longer in title and where the chain of title subsequent to the original common ownership of the fee and the mortgage contains no recital of, or reference to such mortgage. Proof is also to betaken from the last owner that no demand has been made for payment, that no payment has been made of principal for interest, and that such last owner has not acknowledged the debt.

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G-10

NOTICE OF PENDENCY - OPEN MORTGAGE OR MECHANIC'S LIEN DISCHARGE

If (1) a judgment has not been entered, or if entered, was entered more than six years ago and (2) a receiver has not been appointed, or if appointed, has been discharged by court order, and (3) the mortgage or mechanic's lien has been satisfied prior to the pending transaction, the notice of pendency in an action to foreclose the mortgage or mechanic's lien will be disregarded.

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G-11

NOTICE OF PENDENCY - UNSAFE BUILDING VIOLATION (LIS PENDENS)

On an unsafe building violation where the violation for which the notice of pendency was filed is no longer in effect against the building and title came through an in rem sale through the City of New York subsequent to such notice of pendency, the notice of pendency will be deemed merged and will not be deemed an objection of title.

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(Note: This standard is not to be followed where there is a conveyance by the City to any of the parties permitted to acquire title pursuant to Sec. D17-25.0 of the N.Y.C. Administration Code.)

G-12

PUBLICATION OF JUDICIAL SALES IN THE FIVE COUNTIES OF NEW YORK CITY OR NASSAU COUNTY SALES IN NEW YORK LAW JOURNAL

Where a Supreme Court Justice in the five counties of New York City or Nassau County designates the New York Law Journal as a paper for publication for the judicial sale of property in such county or where the Surrogate of the five counties of New York City or Nassau County designates the New York Law Journal as a paper for publication of notices under the Surrogate's Court Procedure Act for the publication of Surrogate Court citations, (with the exception of notices under Section 1801 of the Surrogate's Court Procedure Act) such publication will be deemed publication in a proper newspaper.

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G-13

SHERIFF'S EXECUTION SALES - PRIOR JUDGMENT

No objection will be raised to an insured title which has come through a sheriff's execution sale provided that the judgment under which the sale was had was obtained by personal service, by actual delivery to the defendant, there were no other judgment creditors, no other subordinate liens at the time of the execution sale, that the owner at the time of the execution sale was the debtor,and the execution sale has been properly brought and the purchaser under such sale or his successor in title is in possession.

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G-14

STOCK REPLACED BY REAL ESTATE

When a custodian or general guardian holds stock in a corporation for the benefit of an infant and the corporation in liquidation conveys to the custodian or guardian an interest in real property represented by his proportionate share, the custodian or guardian can sell such real estate interest without securing a court order to sell. The same rule is applicable where an administrator or executor of an estate holds stock in a corporation which is liquidated and an interest in real estate replaces stock in the hands of the administrator or executor.

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G-15

TAX SALES - RIGHT OF RE-ENTRY

In a title made through a tax sale or through a foreclosure of a tax lien, by an In Rem Proceeding or otherwise, a right of re-entry created 10 years prior to such tax proceeding will be passed even though the taxes in question accrued subsequent to the instrument reserving the right of re-entry and even thought the right of re-entry was reserved as a means of enforcing the restrictive covenants. However, the restrictive covenants, as distinguished from the right of re-entry, will not be disregarded.

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