In January 1911, Neponsit Realty Company filed a map of its tract of land in Queens county with the county clerk. The company developed the tract for a strictly residential community and conveyed lots described by reference to the filed map and the roads and streets shown on it. In 1917, Neponsit Realty Company conveyed the land now owned by the defendant to Robert Oldner Deyer and his wife by a deed containing the covenant at issue.
The covenant required the grantee and successors to pay an annual charge, not exceeding four dollars per lot measuring twenty by one hundred feet, to the grantor or its assigns, which could include a property owners association. The sums were to be devoted to the maintenance of roads, paths, parks, beach, sewers, and other public purposes determined by the grantor or assigns. The covenant provided that the charge would become a lien on the land each May first until paid. It stated that the covenants would run with the land until January 31, 1940.
Every deed in the defendant's chain of title, including the referee's deed conveying the property to the defendant after its purchase at a judicial sale, recited that the conveyance was subject to the covenants and restrictions contained in former deeds of record.
The plaintiff, Neponsit Property Owners’ Association, Inc., as assignee of Neponsit Realty Company, commenced this action to foreclose the lien arising from the covenant. The defendant interposed an answer containing denials, seven affirmative defenses, and a counterclaim. The defendant moved for judgment on the pleadings dismissing the complaint, while the plaintiff moved to dismiss the counterclaim and to strike the affirmative defenses. The Special Term granted the plaintiff's motion and denied the defendant's motion. The Appellate Division unanimously affirmed the order and granted leave to appeal to the Court of Appeals on certified questions.
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