BH Sterling Realty, LLC v Longoria

Holding The Appellate Division reversed the lower court’s dismissal of the plaintiff’s claims against the LLC defendants, finding that the defendants failed to conclusively establish they were bona fide purchasers for value without actual or constructive knowledge of the unrecorded contract. The court held that the documentary evidence did not utterly refute the plaintiff’s allegations regarding the defendants’ knowledge of the prior interest in the property.

The court’s words

The status of good faith purchaser for value cannot be maintained by a purchaser with either notice or knowledge of a prior interest or equity in the property

2026 NY Slip Op 06276, at the official text

To succeed on a motion to dismiss based upon documentary evidence pursuant to CPLR 3211(a)(1), the documentary evidence must utterly refute the plaintiff's factual allegations

2026 NY Slip Op 06276, at the official text

they failed to show that 727 Knickerbocker Ave, LLC, purchased the property and S3 RE Funding III, LLC, provided funding to Longoria and Jones secured by mortgages on the property without actual or constructive knowledge of the unrecorded contract

2026 NY Slip Op 06276, at the official text