Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult a qualified New York attorney regarding your specific situation.
Detailed Answer
Under New York law, paying property taxes on real estate you do not own does not automatically grant you any ownership interest. New York recognizes title by deed, will, judicial decree, or statutory operation, not by voluntary tax payments.
1. No automatic lien. Simply covering another party’s tax bill does not create a lien in your favor. See N.Y. Real Property Tax Law (RPTL) §1100 (link).
2. Tax lien certificates. Counties may auction unpaid tax liens to investors. If you purchase a tax lien certificate at a public sale, you hold a lien against the property. The owner then has a statutory redemption period—usually two years—during which they can repay the taxes plus interest. Failure to redeem may lead to foreclosure. See RPTL §1100(5) (link).
3. Tax foreclosure. If redemption does not occur, the certificate holder (or county) may initiate a tax foreclosure action under the Real Property Actions and Proceedings Law (RPAPL) Article 11 or 15-A. Only after a court-ordered sale and issuance of a tax deed does fee title transfer to the purchaser.
4. Equitable remedies. In rare cases, a court may impose a constructive trust or equitable lien if you can show a clear, enforceable agreement or unjust enrichment. New York courts require written evidence of the property owner’s promise to grant you an interest in exchange for your payments.
Key takeaway: Without purchasing a tax lien certificate or obtaining a court decree, paying another person’s property taxes in New York does not give you any legal or equitable title to the property.
Helpful Hints
- Obtain a written agreement with the property owner if you expect repayment or ownership rights.
- Consider purchasing a tax lien certificate at the county auction to secure a statutory lien.
- Track the redemption period carefully to prepare for potential foreclosure proceedings.
- Engage a title company to confirm the property’s ownership history and existing liens.
- Consult a real estate attorney to explore remedies like constructive trusts or partition actions.