What legal steps does the New York AG need to take to convert a judgment into a lien and then into a foreclosure sale on commercial property?
Executive summary
A money judgment becomes a lien in New York by docketing or transcripting that judgment with the county clerk where the debtor’s real property is located; once docketed the creditor can pursue execution remedies and, if necessary, a foreclosure-style sale under the foreclosure statutes, but the mechanics differ when the claim is a tax lien or when cross-county property interests are involved [1] [2] [3]. The Attorney General (AG) — like any judgment creditor — must follow statutory docketing, levy and foreclosure procedures, preserve lien priority, and comply with notice, lis pendens and sale requirements under RPAPL and CPLR frameworks [4] [5] [6].
1. Docket the judgment where the property sits to create an enforceable lien
The first legal step is ministerial but decisive: file a transcript (docket) of the judgment with the county clerk in the county where the commercial property is located so the judgment becomes a judgment lien against real property in that county; if the original judgment issued in Supreme Court in that county it may already be docketed automatically but otherwise the creditor must file the transcript to create the lien [1] [2] [4]. Multiple counties require multiple transcripts; mis‑docketing (name errors, wrong county) can invalidate a lien, so precision and local filing are essential [4].
2. Convert the lien into enforceable levy or execution remedies
Once docketed, the creditor may seek to levy on property by requesting execution remedies — for real property this typically involves a sheriff’s levy or filing a notice of levy with the county clerk and acquiring a property execution (Form 199) — steps that permit the enforcement of the lien against the debtor’s realty interests [6] [7]. Timing matters: judgment liens run only for statutory periods unless renewed or extended (CPLR renewals and CPLR §5203/CPLR §5235 issues), and the creditor must move before liens lapse or apply to extend them [6].
3. When foreclosure is necessary, bring the appropriate foreclosure action
If seizure by execution is impractical or insufficient, the creditor can seek a foreclosure sale akin to mortgage foreclosure: file an action to foreclose the lien or, where statutorily provided (such as tax-lien scenarios), prosecute an in rem foreclosure to obtain a judgment directing sale; New York statutes authorize foreclosure of tax liens “as in an action to foreclose a mortgage” and set out sale and conveyance rules for purchasers at foreclosure [8] [3]. For commercial mortgage-style foreclosures, the court process requires pleadings, service, possible receivership applications, preservation of the lis pendens and adherence to RPAPL sale procedures culminating in a public auction and transfer [5] [9].
4. Follow notice, priority and post‑sale distribution rules
The AG must comply with statutory notice, publication and filing requirements that feed into the judgment roll and permit intervening parties to assert claims; these administrative steps are particularly emphasized in tax-lien in rem actions where publication, posting and filings are mandated [10]. Priority of liens controls who gets paid from sale proceeds — mortgages and tax liens often take precedence over judgment liens — and courts distribute sale proceeds according to that priority, with surplus monies claimable by judgment creditors and prior owners under court forms and rules [9] [11].
5. Practical pitfalls, strategic choices and limits of the record
Practical counsel is indispensable: foreclosure is costly and time‑consuming, lien priority and other encumbrances can defeat recovery, and statutory time limits require renewal or extension motions; a judgment creditor must weigh seizure, foreclosure or negotiated collection as strategies [11] [6]. Reporting examined here explains the mechanical and statutory steps but does not supply AG‑specific internal policies or any unique prosecutorial prerogatives beyond those of other judgment creditors — if seeking AG‑specific authority or internal procedures, that information was not available in the provided sources and cannot be assumed [1] [2].