What Happens to Title of Real Estate Upon Condemnation?

Upon the vesting of title in a condemnation proceeding, all lien interests in the subject property by virtue of mortgages, unpaid taxes, or unsatisfied judgments are extinguished.  However, substituted in their place are equitable liens against the condemnation award to the extent of each lien and interest as of the date title vested.  County of Rockland v Kohl Industrial Park Co., 172 AD2d 607 (2d Dept 1991).

There is, however, one lien which has a super priority.  The attorney who created the fund by litigation the condemnation claim has not only a charging lien under Judiciary Law Section 475, but an equitable ownership interest in the client’s cause of action.  LMWT Realty Corp. v Davis Agency Inc., 85 NY2d 462, 467 (1995).