Ternination of Title Registration Procedures.

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§ 436. Termination of title registration procedures. 1. As used in this section:

a. "Adverse instrument" means any document, instrument or paper that adversely affects, but does not convey, the fee title to registered land, and the validity of which is not dependent upon consent by an owner of the registered land or some person claiming by, through or under that owner. Adverse instruments include, but are not limited to, mechanics' lien claims, judgments, and lis pendens notices. Adverse instruments do not include sheriff's deeds, marshall's deeds, or tax deeds.

b. "Voluntary instrument" means any document, instrument or paper that either conveys the fee title to registered land or affects title to registered land and the validity of which is dependant upon consent by an owner of the registered land or by some person claiming by, through, or under that owner. Voluntary instruments include, but are not limited to, deeds, including tax deeds, sheriff's deeds and marshall's deeds, mortgages, assignments of mortgage, leases and grants of easement or license.

c. "Registered land" means real property and interests in real property, which have been registered under this article.

d. "Registrar's certificate of title" means a document issued pursuant to section three hundred ninety-four of this article.

2. On and after the effective date of this section, no title to land may be registered under this article. Provided, however, that every certificate of title or instrument affecting title filed prior to the effective date of this section shall be registered pursuant to the provisions of this article.

3. On or after the effective date of this section and before January first, two thousand, the registrar shall accept only adverse instruments which he or she shall register pursuant to this article.

4. On and after the effective date of this section the registrar shall refuse to accept for registration any instrument that is a voluntary instrument. Instead of accepting such instruments for registration, the registrar shall upon payment of the statutory recording fee, deliver to the county clerk, or in the counties of Bronx, Kings, Queens and New York, the register for recording each current certificate of title to all lands affected by that voluntary or adverse instrument. Before delivering the certificate, the registrar shall memorialize or note on the certificate any instruments relating to incumbrances, charges, trusts, liens and transfers that have been filed with the registrar that have not been memorialized or noted. A certificate of title shall be delivered in the form required for recording.

5. On or before January first, two thousand the registrar shall deliver to the county clerk, or in the counties of Bronx, Kings, Queens and New York, the register for recording the certificates of title of all remaining land which was previously registered under this article. Before delivering those certificates, the registrar shall memorialize or note on the certificates any instruments relating to incumbrances, charges, trusts, liens and transfers that have been filed with the registrar and that have not yet been memorialized or noted. A certificate of title shall be delivered in the form required for recording.

6. As of the date of recording of certificates delivered pursuant to subdivision four or five of this section, the recorded certificates shall be subject only to incumbrances, charges, trusts, liens and transfers as may be memorialized or noted on the certificate, and free from all others except those set forth in section four hundred of this article.

After the recording of certificates which are delivered under subdivisions four and five of this section, title to lands shall be conveyed or encumbered in the same manner as set forth in article nine of this chapter. All instruments noted or memorialized on the certificates of title so recorded shall have the same force and effect as if they were filed with the county clerk, or in the counties of Bronx, Kings, Queens and New York, the register at the time they were noted or were otherwise memorialized on the certificates of title. No instrument, however, that was filed, docketed or recorded by the county clerk, or in the counties of Bronx, Kings, Queens and New York, the register, but that was not duly registered, shall become a lien, incumbrance, trust or charge against any title which was delivered pursuant to subdivisions four and five of this section, unless such instrument was filed, recorded or docketed after the date such title was recorded, provided, however, that a judgement docketed by the county clerk prior to the time a certificate of title was recorded shall be valid as against such land if the landowner received notice of such judgment.

7. Recording of a certificate of title under subdivision four or five of this section, shall not disturb the effect of any proceedings under the registry system where the question of title to the real property registered under this article has been determined. All proceedings concerning the registration of title before delivery to the appropriate office under subdivision four or five of this section, and all provisions of this article that relate to the status of the title, shall have continuing force and effect with respect to the period of time that title remained under the registry system. Those provisions giving rise to a right of action for damages against the county shall also continue in force and effect with respect to the period of time that title remained under the registry system.

8. Nothing contained in this section terminates, diminishes or impairs any existing right in or pertaining to registered land or any existing right to resort to the assurance fund created under sections four hundred twenty-six through four hundred twenty-nine of this article and that right may be asserted and enforced in the same manner, to the same extent, and subject to the same limitations as provided in those sections.

9. No claim shall be made based upon prescription or adverse possession for land which was recorded under subdivision four or five of this section and which was previously registered under this article until after such time as the property is transferred or conveyed and the elements of such claims may be established against a subsequent owner.



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