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Wednesday 23 April 2014

Building zone resolution is not an encumbrance

In the case of Lincoln Trust Co. v Williams Building Corporation (183 App. Div. 
225, 169 N.Y.S. 1045) the Appellate Division of New York held as: 

“In my opinion the building zone resolution is not an encumbrance 
within the meaning of the contract. The resolution was obviously 
intended as a mere police regulation of business and premises. It is a 
police regulation such as the Tenement House Law, or Building Codes 
and numerous other regulations, which are never mentioned in contracts 
and have never been held to be encumbrances.” 

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