NY suspends all ‘nonessential’ court proceedings, leaving uncertainty around mortgage closings

GAC 2017 Capitol

The state of New York has suspended all “nonessential” court matters, effective March 22. The administrative order by New York State Chief Administrative Judge Lawrence Marks also states that county clerks will, until further notice, not file any nonessential papers submitted to their offices.

The order clarifies legal matters that are considered essential, but the list does not include transactions related to property purchases, which could have a major impact on mortgage closings in the state.

However, after consultation by New York Credit Union Association leaders with multiple attorneys, it appears that land documents may be exempt from the order. “Speaking on behalf of OwnersChoice Funding, we are moving forward with scheduled closings, while giving extra scrutiny to any exceptions or exclusions that may be appearing in the title insurance policies,” said Association President/CEO William J. Mellin.

Marks’ order follows Gov. Andrew Cuomo’s Executive Order 202.8, suspending and tolling statutes of limitations for commencing the filing of legal actions, as well as the time limits governing actions and proceedings in the state’s criminal, family, civil, surrogate’s and appellate courts.

The administrative order can be viewed on the New York State Office of Court Administration’s website.

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