Chappo Co., Inc. v. Allan Riley Co., Inc.

Full title: CHAPPO COMPANY, INC., Appellant, v. ALLAN RILEY COMPANY, INC., Respondent

Court: Appellate Division of the Supreme Court of New York, First Department

Date published: Mar 26, 1996

225 A.D.2d 468 (N.Y. App. Div. 1996)

639 N.Y.S.2d 383

Opinion

March 26, 1996

Appeal from the Supreme Court, New York County (Diane Lebedeff, J.).

Plaintiff, an unlicensed real estate broker, cannot circumvent the licensing requirement of Real Property Law § 442-d by characterizing the loan it allegedly negotiated on defendant's behalf as a "leasebacked note transaction". The documentary evidence clearly establishes that a mortgage was the dominant security under the loan allegedly negotiated by plaintiff, and the assignment of rents incidental. Accordingly, the IAS Court properly determined that plaintiff was acting as a real estate broker within the meaning of the statute and had to be licensed as such to maintain this action.

Concur — Rosenberger, J.P., Ellerin, Rubin and Nardelli, JJ.