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New York

N.Y. Real Property Law § 290 et seq.; RPAPL Article 13

Contract type

Installment sales contract

Cure period

30 days (contractual)

Recording

Recommended

County Clerk (or Register in NYC)

Default remedy

Judicial foreclosure

Owner-Finance Land Contracts in New York

Overview

New York recognizes installment land contracts, but the regulatory landscape changed sharply in 2021. Residential installment contracts are now subject to General Business Law Article 36-C (added by Senate Bill S5723D), with strict disclosure and recording requirements. Vacant-land contracts remain governed primarily by general contract and recording law and are commonly used for upstate rural parcels.

Governing Law

Recording is governed by N.Y. Real Property Law (RPL) Article 9 (§§ 290 et seq.). The Statute of Frauds is at N.Y. General Obligations Law § 5-703. For residential installment contracts, General Business Law § 791 et seq. (Article 36-C) imposes disclosure obligations, a 5-day recording requirement, and other consumer protections. Mortgage foreclosure procedure is at RPAPL Article 13. Long-running installment contracts are also subject to New York's equitable-mortgage doctrine.

Recording the Buyer's Interest

Recording is mandatory for residential installment contracts under GBL § 791 (within 5 business days of execution). For vacant land, recording is optional but strongly recommended; under RPL Article 9, an unrecorded contract is vulnerable to subsequent bona fide purchasers and creditors. Recording is done at the County Clerk's Office (or the City Register in NYC).

Default and Cure Period

New York does not impose a statutory cure period for vacant-land installment contracts; the contract supplies the cure period — typically 30 days. Residential installment contracts under GBL § 791 carry mandatory notice and disclosure obligations and may, in litigation, be treated as mortgages with full RPAPL Article 13 cure and reinstatement rights.

Seller Remedies on Default

Remedies include (1) forfeiture if the contract so provides and the buyer's equity is modest, (2) judicial foreclosure under RPAPL Article 13 if the contract is recharacterized as an equitable mortgage (likely for long-running deals), (3) specific performance and suit for the unpaid balance, and (4) ejectment after forfeiture. New York courts disfavor forfeiture of substantial buyer equity and often require foreclosure procedure.

Vacant Land vs. Residential

This is the critical distinction in New York. Residential installment contracts (1-4 family dwellings used as a residence) are heavily regulated under GBL § 791 et seq., with disclosures, plain-language requirements, the 5-day recording rule, and other consumer protections. Vacant land is exempt from those specific provisions and is governed by general contract, Statute of Frauds, and recording law.

Practical Notes for Sellers

  • For residential transactions, comply scrupulously with GBL § 791 — disclosures, recording within 5 business days, and required contract terms.
  • For vacant land, record the contract or a memorandum with the County Clerk promptly to protect priority.
  • Build a 30-day cure period and certified-mail notice procedure into the contract.
  • Plan for RPAPL Article 13 judicial foreclosure as the realistic remedy for long-term contracts.
  • Use a New York real estate attorney; the state's attorney-driven closing model and GBL § 791 nuances are unforgiving.

Disclaimer

This page is a public-law summary for general informational purposes only. It is not legal advice. Owner-finance transactions are state-specific and fact-specific. Engage a licensed attorney in the parcel's state before drafting, signing, or recording any agreement.

Structured data

The legal mechanics of a New York deal.

Governing statute
high confidence
N.Y. Real Property Law § 290 et seq.; RPAPL Article 13
New York Real Property Law governs recording. No dedicated installment land contract statute, but consumer-protection rules increasingly apply to residential land contracts.
Recording instrument
Memorandum of contract or full installment contract
Filed at the County Clerk (or Register in NYC). Recording is recommended to protect the buyer's interest.
Cure period
30 days (typical contractual)
Residential transactions face additional notice and reinstatement rights borrowed from mortgage law.
Default remedy
Judicial foreclosure
New York courts strongly favor treating long-running installment contracts as equitable mortgages requiring judicial foreclosure under RPAPL Article 13.
Notable requirements
  • Written contract (General Obligations Law § 5-703)
  • Acknowledgment for recording
Prohibited or limited
  • Forfeiture disfavored; equitable mortgage doctrine routinely applied
  • Recent legislation enhances disclosure for residential land contracts
Vacant land vs. residential
New York vacant-land owner financing tilts toward deed-and-mortgage structures. Slow judicial foreclosure timeline must be priced in.

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Important disclaimer

This page is a public-law summary for general informational purposes only. It is not legal advice. Owner-finance transactions are state-specific and fact-specific. Engage a licensed attorney in New York before drafting, signing, or recording any agreement. Statute citations and procedural notes may be incomplete or out of date — always verify against the current code.