Delaware Statutory Trust

[mike siris]

Has anyone represented anyone who has taken title to NYS real property in the name of a Delaware Statutory Trust (DST)? Did you obtain authorization to do business in NYS? If so, did you rely on NY General Association Law Section 2(2) and EPTL Section  7-2.1(c) and interpret a DST to be a "Business Trust" under NYS law?  Thank you.

(Anonymous posting)

[Lawrence Litwack]

You do not need to obtain authorization to do business in NY.

LAWRENCE M. LITWACK, ESQ.

BIG APPLE ABSTRACT CORP.

42-40 BELL BOULEVARD

BAYSIDE, NEW YORK 11361

PHONE: 718-428-6100

FAX: 718-428-2064

Be aware!  Online banking fraud is on the rise.  If you receive an unsecure email containing WIRE TRANSFER INSTRUCTIONS, call our office to verify the information prior to sending funds.

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From: nyclar...@googlegroups.com <nyclar...@googlegroups.com> on behalf of mike siris <mike...@gmail.com>
Sent: Wednesday, June 2, 2021 3:07 PM
To: nyclarealprop <nyclar...@googlegroups.com>
Subject: [nyclarealprop] Delaware Statutory Trust

 

Has anyone represented anyone who has taken title to NYS real property in the name of a Delaware Statutory Trust (DST)? Did you obtain authorization to do business in NYS? If so, did you rely on NY General Association Law Section 2(2) and EPTL Section  7-2.1(c) and interpret a DST to be a "Business Trust" under NYS law?  Thank you.

(Anonymous posting)

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[Trish LaPorta]

It is unclear if New York recognizes DSTs.  While an entity could acquire in the name of the DST, it may not be able to finance or sell and even if they are issued an owner’s policy the acts of the insured are not covered by the title insurer.  When a title insurer sees it is a DST it may not want to insure.

 

 

 

Patricia A. LaPorta

Vice President

New York Area Underwriting Counsel
Agency Division

First American Title Insurance Company

666 Third Avenue, 5^th Floor, New York, New York 10017
Direct: (212) 381-6606

Mobile: (917) 363-0638

Email: plap...@firstam.com

A member of the First American Financial Corporation family of companies  | NYSE: FAF

 

UNTIL FURTHER NOTICE, please do not overnight or deliver any documents to our office. Notwithstanding, if original documents are required to be delivered to us, please advise and an alternate address will be provided. We appreciate your cooperation and patience at this time.

 

From: nyclar...@googlegroups.com <nyclar...@googlegroups.com> On Behalf Of mike siris
Sent: Wednesday, June 2, 2021 3:07 PM
To: nyclarealprop <nyclar...@googlegroups.com>

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[Lance Pomerantz]

If the DST is a "foreign limited partnership" as defined in Partnership Law § 121-101 (e), a certificate of authority is required by Partnership Law § 121-904 for the entity to "have such powers to conduct business in this state as are permitted by the laws of the jurisdiction in which it was organized." Failure to obtain the certificate of authority limits the powers of the entity as set out in
Partnership Law § 121-907.

As far as holding title is concerned, holding legal title in the name of any trustee, rather than "the trust," would address the EPTL concerns and is expressly permitted under 12 Del. C. 3805(f), unless "otherwise provided in the governing instrument" of the trust.

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Lance R. Pomerantz, Esq.

Land Title Law
140 Old Broadway
Sayville NY 11782-1710
Tel.: 631.727.0133
Fax: 631.963.3210
E-mail: La...@LandTitleLaw.com
Web: www.LandTitleLaw.com

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