Failure of title to property sold
§ 5237. Failure of title to property sold. The purchaser of property sold by a sheriff pursuant to execution or order may recover the purchase money from the judgment creditors who received the proceeds if the property is recovered from such purchaser in consequence of an irregularity in the sale or a vacatur, reversal or setting aside of the judgment upon which the execution or order was based. If a judgment for the purchase money is so recovered against a judgment creditor in consequence of an irregularity in the sale, such judgment creditor may enforce his judgment as if no levy or sale had been made, and, for that purpose, he may move without notice for an order restoring any lien or priority or amending any docket entry affected by the sale.
If a buyer at a sheriff's sale loses the property due to a sale irregularity or the judgment being reversed/vacated, the buyer may recover the purchase money from the creditors who got the proceeds; a creditor forced to repay may restore its lien/priority by motion without notice.
Marked in the text: penalties, time limits, sums of money. Editorial emphasis added by this edition; it does not appear in the statute as enacted.
This provision appears in Volume 2 — The JG-22 CPLR and in Volume 1 — The JG-22 in Plain English.