Co-ops and Condominiums

In an action by commercial condominium owner for a declaration that a neighboring condominium encroaches onto its space, for an order directing the neighboring condominium owner to move the wall dividing the premises, and for money damages, the complaining owner appealed from Supreme Court's grant of neighbor's summary judgment motion and declaration that neighbor has an easement over the encroaching space. The Appellate Division affirmed, holding that even if the easement was not recorded against the complaining owner's unit, the complaining owner was on inquiry notice of the easement.

The sponsor's initial Declaration for the building included a single commercial unit along with the residential units in the building. The sponsor later amended the Declaration to subdivide the commercial space into four separate units. Units 2 and 4 were adjacent units separated by a party wall. When the sponsor sold off Unit 2 to neighboring owner, the deed provided that the conveyance included an "easement for the continuance of all encroachments by the Unit on any adjoining units … now existing as a result of the construction or rehabilitation of the Building." The deed provided that it was also subject to easements in favor of other adjoining units. The deed was recorded, but no easement was recorded against any of the other condominium units. Subsequently, the sponsor conveyed Unit 4 to complaining unit owner with the same language. Later, the complaining owner discovered that the square footage of Unit 4 was significantly smaller than the square footage described in the condominium declaration. Apparently, the wall between Unit 2 and Unit 4 had been placed in an incorrect location. Complaining owner then brought an action seeking declaratory relief, relocation of the wall, and money damages. Supreme Court granted summary judgment to neighboring unit owner and declared that Unit 2 had an easement over Unit 4.