Is the Condominium Association's Interest In Rent Subordinate to the First Mortgagee's Interest ?
In Dime Sav. Bank v. Pesce (93 NY2d 939, 941), the Court of Appeals held that the condominium association's interest in rent was subordinate to the first mortgagee's interest.
CPLR 5203 (a) (2) clearly provides that a mortgage given to secure the payment of the purchase price of the judgment debtor's interest in the property prevails over judgment creditor's interest even if the judgment creditor is first in time. (United States v. Miller, 400 F Supp 1080, 1083 SD NY 1975.)
This is true even if the judgment debtor comes into the ownership of real property after several judgments have been docketed against him in the realty county. (Hulbert v. Hulbert, 216 NY 430 1916.)
"If the method of the judgment debtor's acquisition is purchase, and as part of the price he gives back a purchase money mortgage, the mortgagee, under paragraph 2 of CPLR 5203(a), takes a right superior to that of the previously docketed judgment, and a foreclosure of the purchase money mortgage gives the buyer ... title free of the judgment creditor's lien." (Siegel, Practice Commentaries, McKinney's Cons Laws of NY, Book 7B, CPLR C5203:5, at 115.)