S T A T E O F N E W Y O R K
________________________________________________________________________
3518
2009-2010 Regular Sessions
I N A S S E M B L Y
January 27, 2009
___________
Introduced by M. of A. PERRY -- Multi-Sponsored by -- M. of A. BENEDET-
TO, BOYLAND, BROOK-KRASNY, CHRISTENSEN, CLARK, COLTON, DelMONTE,
ESPAILLAT, GALEF, GLICK, GREENE, HIKIND, HYER-SPENCER, KELLNER, KOON,
V. LOPEZ, MAISEL, MAYERSOHN, McENENY, MILLMAN, REILLY, J. RIVERA,
ROBINSON, ROSENTHAL, SEMINERIO, SWEENEY, TITUS, TOWNS, WALKER, WEISEN-
BERG, WRIGHT -- read once and referred to the Committee on Judiciary
AN ACT to amend the real property law, in relation to establishing The
New York protect title to my home act
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
"The New York protect title to my home act".
S 2. Section 291 of the real property law, as amended by chapter 447
of the laws of 1984, is amended to read as follows:
S 291. Recording of conveyances. A conveyance of real property, with-
in the state, on being duly acknowledged by the person executing the
same, or proved as required by this chapter, and such acknowledgment or
proof duly certified when required by this chapter, may be recorded in
the office of the clerk of the county where such real property is situ-
ated, and such county clerk OR CITY REGISTRAR WHERE APPLICABLE shall,
upon the request of any party, on tender of the lawful fees therefor,
record the same in [his] said office. THE CLERK OF THE COUNTY OR CITY
REGISTRAR WHERE SUCH CONVEYANCE OF RESIDENTIAL REAL PROPERTY IS RECORDED
AND MAINTAINED SHALL MAIL A WRITTEN NOTICE OF SUCH CONVEYANCE, NOT LESS
THAN THIRTY DAYS PRIOR TO THE RECORDING OF SUCH CONVEYANCE, TO EACH
OWNER OR OWNERS OF RECORD OR INTERESTED PERSON OR THE THIRD PARTY DESIG-
NEE OF SUCH OWNER OR OWNERS OF RECORD OR INTERESTED PERSON OF RECORD TO
SUCH REAL PROPERTY. FOR PURPOSES OF THIS SECTION, A PERSON OF INTEREST
SHALL MEAN A PERSON HAVING A VALID LEGAL INTEREST SUCH AS A MORTGAGE
HOLDER OR A PERSON HAVING A RECORDED LIEN ON SUCH PROPERTY. THE NOTICE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02108-01-9
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SHALL HAVE THE HEADING PRINTED IN 20 POINT BOLD TYPE AND READ AS
FOLLOWS:
"NOTICE OF SALE OR TRANSFER OF OWNERSHIP OF YOUR RESIDENTIAL PROPERTY.
TO:______________________________
NAME OF OWNER OF RECORD
OUR RECORDS SHOW THAT YOU ARE LISTED AS THE CURRENT OWNER, OR PERSON OF
INTEREST, ON THE REGISTERED TITLE FOR RESIDENTIAL PROPERTY:
BLOCK # __________ LOT # ________
LOCATED AT: ___________________________
STREET ADDRESS
IN THE COUNTY OF __________________ NEW YORK
ON ____________, DOCUMENTS WERE FILED AT THIS
DATE
OFFICE TO CHANGE OWNERSHIP AND TRANSFER TITLE OF YOUR PROPERTY.
TO: ______________________________
NAME OF NEW OWNER
BY LAW, THE COUNTY CLERK OR CITY REGISTRAR MUST WAIT THIRTY (30) DAYS
BEFORE TRANSFER OF TITLE CAN BE REGISTERED. IF YOU HAVE ANY QUESTIONS
REGARDING THE VALIDITY OF THE DOCUMENTS, AND WISH TO DISPUTE THE RECORD-
ING OF THE TRANSFER, PLEASE CONTACT THE COUNTY CLERK'S OR CITY
REGISTRAR'S OFFICE BY ________________________."
DATE
THE PARTY SEEKING TO RECORD SUCH CONVEYANCE SHALL BEAR THE COST OF SUCH
WRITTEN NOTICE. SUCH COST SHALL BE PRESCRIBED BY THE MUNICIPALITY. IF
THE ACTUAL OWNER OR OWNERS OF RECORD OR INTERESTED PERSON OF RECORD
EXECUTED SUCH CONVEYANCE, RECEIPT OF ANY NOTICE REQUIRED BY THIS
SECTION, FAILURE TO MAIL SUCH NOTICE OR THE FAILURE OF ANY PARTY TO
RECEIVE THE SAME, SHALL NOT AFFECT THE VALIDITY OF THE CONVEYANCE OF THE
PROPERTY OWNED BY SUCH PERSON. THE COUNTY CLERK OR CITY REGISTRAR SHALL
RECORD SUCH CONVEYANCE AFTER THIRTY DAYS UNLESS THE OWNER OR OWNERS OF
RECORD OR INTERESTED PERSON SHALL HAVE FILED AN AFFIDAVIT SIGNED UNDER
OATH AND UNDER PENALTY OF PERJURY THAT SUCH PERSON DID NOT PARTICIPATE
IN SUCH TRANSACTION AND DID NOT EXECUTE ANY OF THE DOCUMENTS SUBMITTED
TO RECORD SUCH CONVEYANCE AND DID NOT CONVEY A POWER OF ATTORNEY TO
ANOTHER PERSON TO ACT ON SUCH PERSON'S BEHALF.
WHERE THE CONVEYANCE OF PROPERTY WAS EXECUTED WITHOUT THE KNOWLEDGE,
CONSENT AND PARTICIPATION OF THE OWNER OR OWNERS OF RECORD, SUCH CONVEY-
ANCE SHALL BE DEEMED FRAUDULENT RENDERING VOID THE TITLE OF SUCH GRANTOR
AND TITLE SHALL REMAIN VESTED WITH THE OWNER OR OWNERS OF RECORD. ANY
PERSON WHO, WITH INTENT TO DEFRAUD, VIOLATES THIS SECTION OR ENGAGES IN
ANY PRACTICE WHICH WOULD OPERATE AS A CRIMINAL FRAUD OR DECEIT UPON AN
OWNER OR OWNERS OF RECORD SHALL, UPON CONVICTION, BE GUILTY OF A CLASS E
FELONY AND SUBJECT TO A FINE OF NOT MORE THAN TWENTY-FIVE THOUSAND
DOLLARS, IMPRISONMENT IN ACCORDANCE WITH THE PENAL LAW, OR BOTH. ANY
PURCHASER WHO, WHEN ACTING IN GOOD FAITH, VIOLATES THIS SECTION, SHALL
NOT BE DEEMED TO HAVE VIOLATED SUCH SECTION IF THE PURCHASER:
(I) ESTABLISHES BY A PREPONDERANCE OF THE EVIDENCE THAT THE FRAUDULENT
CONVEYANCE WAS NOT INTENTIONAL AND RESULTED WITHOUT THE PURCHASER'S
KNOWLEDGE;
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(II) NOTIFIES THE OWNER OR OWNERS OF RECORD AND ANY APPROPRIATE
AUTHORITY WITHIN NINETY DAYS OF HAVING KNOWLEDGE OR BECOMING AWARE OF
SUCH FRAUDULENT CONVEYANCE; AND
(III) PROVIDES HIS OR HER FULL COOPERATION TO AUTHORITIES INVESTIGAT-
ING SUCH FRAUD. Every such conveyance not so recorded is void as against
any person who subsequently purchases or acquires by exchange or
contracts to purchase or acquire by exchange, the same real property or
any portion thereof, or acquires by assignment the rent to accrue there-
from as provided in section two hundred ninety-four-a of [the real prop-
erty law] THIS ARTICLE, in good faith and for a valuable consideration,
from the same vendor or assignor, his OR HER distributees or devisees,
and whose conveyance, contract or assignment is first duly recorded, and
is void as against the lien upon the same real property or any portion
thereof arising from payments made upon the execution of or pursuant to
the terms of a contract with the same vendor, his OR HER distributees or
devisees, if such contract is made in good faith and is first duly
recorded. Notwithstanding the foregoing, any increase in the principal
balance of a mortgage lien by virtue of the addition thereto of unpaid
interest in accordance with the terms of the mortgage shall retain the
priority of the original mortgage lien as so increased provided that any
such mortgage instrument sets forth its terms of repayment.
S 3. The real property law is amended by adding a new section 292-b to
read as follows:
S 292-B. THIRD PARTY NOTICE OF CONVEYANCE OF RESIDENTIAL REAL PROPER-
TY. 1. A PROPERTY OWNER MAY REQUEST THAT A NOTICE OF CONVEYANCE BE SENT
TO SUCH OWNER AND TO AN ADULT THIRD PARTY. SUCH REQUEST SHALL BE MADE ON
A FORM PRESCRIBED BY THE STATE BOARD AND SHALL BE SUBMITTED TO THE
RECORDING OFFICER OF THE COUNTY IN WHICH THE REAL PROPERTY IS SITUATED.
SUCH FORM SHALL PROVIDE A SECTION WHEREBY THE DESIGNATED THIRD PARTY
SHALL CONSENT TO SUCH DESIGNATION. SUCH REQUEST SHALL BE EFFECTIVE UPON
RECEIPT BY THE RECORDING OFFICER. THE RECORDING OFFICER SHALL MAINTAIN A
LIST OF ALL PROPERTY OWNERS WHO HAVE DESIGNATED A THIRD PARTY RECIPIENT
OF NOTICES PURSUANT TO THIS SECTION.
2. A NOTICE SHALL BE SENT TO THE PROPERTY OWNER AND THE DESIGNATED
THIRD PARTY AT LEAST THIRTY DAYS PRIOR TO THE RECORDING OF ANY CONVEY-
ANCE INVOLVING THE RESIDENTIAL REAL PROPERTY. SUCH NOTICE SHALL READ
SUBSTANTIALLY AS FOLLOWS: "ON BEHALF OF (IDENTIFY THE PROPERTY OWNER OF
RECORD), YOU ARE ADVISED THAT THE REAL PROPERTY SITUATED AT (IDENTIFY
THE LOCATION OF THE REAL PROPERTY) IS IN THE PROCESS OF BEING CONVEYED.
YOU ARE ENCOURAGED TO CONFIRM THE VALIDITY OF THIS CONVEYANCE WITH SUCH
PROPERTY OWNER, AND TO OFFER ASSISTANCE IF NEEDED, ALTHOUGH YOU ARE
UNDER NO LEGAL OBLIGATION TO DO SO. YOUR COOPERATION AND ASSISTANCE ARE
GREATLY APPRECIATED."
3. A NOTICE SHALL BE SENT TO THE PROPERTY OWNER AND DESIGNATED THIRD
PARTY WHENEVER THE RECORDING OFFICER IS REQUIRED TO SEND A NOTICE TO THE
PROPERTY OWNER OF RECORD REGARDING THE PROPERTY. THE NOTICE SHALL HAVE
THE HEADING PRINTED IN 20 POINT BOLD TYPE AND READ AS FOLLOWS:
"NOTICE OF SALE OR TRANSFER OF OWNERSHIP OF YOUR RESIDENTIAL PROPERTY.
TO:______________________________
NAME OF OWNER OF RECORD
OUR RECORDS SHOW THAT YOU ARE LISTED AS THE CURRENT OWNER, OR PERSON OF
INTEREST, ON THE REGISTERED TITLE FOR RESIDENTIAL PROPERTY:
BLOCK # __________ LOT # ________
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LOCATED AT: ___________________________
STREET ADDRESS
IN THE COUNTY OF __________________ NEW YORK
ON ____________, DOCUMENTS WERE FILED AT THIS
DATE
OFFICE TO CHANGE OWNERSHIP AND TRANSFER TITLE OF YOUR PROPERTY.
TO: ______________________________
NAME OF NEW OWNER
BY LAW, THE COUNTY CLERK MUST WAIT THIRTY (30) DAYS BEFORE TRANSFER OF
TITLE CAN BE REGISTERED. IF YOU HAVE ANY QUESTIONS REGARDING THE VALID-
ITY OF THE DOCUMENTS, AND WISH TO DISPUTE THE RECORDING OF THE TRANSFER,
PLEASE CONTACT THE COUNTY CLERK'S OFFICE BY ________________________."
DATE
THE COST OF SUCH NOTICE SHALL BE BORNE BY THE PERSON OR PERSONS REQUEST-
ING SUCH NOTICE. THE COUNTY CLERK OR CITY REGISTRAR WHERE APPLICABLE
SHALL RECORD SUCH CONVEYANCE AFTER THIRTY DAYS UNLESS THE OWNER OR
OWNERS OF RECORD OR INTERESTED PERSON SHALL HAVE FILED AN AFFIDAVIT
SIGNED UNDER OATH AND PENALTY OF PERJURY THAT THEY DID NOT PARTICIPATE
IN SUCH TRANSACTION AND DID NOT EXECUTE ANY OF THE DOCUMENTS SO SUBMIT-
TED TO RECORD SUCH CONVEYANCE.
4. IF THE ACTUAL OWNER OR OWNERS OF RECORD OR INTERESTED PERSON OF
RECORD EXECUTED SUCH CONVEYANCE, RECEIPT OF ANY NOTICE REQUIRED BY THIS
SECTION, FAILURE TO MAIL SUCH NOTICE OR THE FAILURE OF ANY PARTY TO
RECEIVE THE SAME, SHALL NOT AFFECT THE VALIDITY OF THE CONVEYANCE OF THE
PROPERTY OWNED BY SUCH PERSON.
5. WHERE THE CONVEYANCE OF PROPERTY WAS EXECUTED WITHOUT THE KNOW-
LEDGE, CONSENT AND PARTICIPATION OF THE OWNER OR OWNERS OF RECORD, SUCH
CONVEYANCE SHALL BE DEEMED FRAUDULENT RENDERING VOID THE TITLE OF SUCH
GRANTOR AND TITLE SHALL REMAIN VESTED WITH THE OWNER OR OWNERS OF
RECORD. ANY PERSON WHO, WITH INTENT TO DEFRAUD, VIOLATES THIS SECTION OR
ENGAGES IN ANY PRACTICE WHICH WOULD OPERATE AS A CRIMINAL FRAUD OR
DECEIT UPON AN OWNER OR OWNERS OF RECORD SHALL, UPON CONVICTION, BE
GUILTY OF A CLASS E FELONY AND SUBJECT TO A FINE OF NOT MORE THAN TWEN-
TY-FIVE THOUSAND DOLLARS, IMPRISONMENT IN ACCORDANCE WITH THE PENAL LAW,
OR BOTH. ANY PURCHASER WHO, WHEN ACTING IN GOOD FAITH, VIOLATES THIS
SECTION, SHALL NOT BE DEEMED TO HAVE VIOLATED SUCH SECTION IF THE
PURCHASER:
(I) ESTABLISHES BY A PREPONDERANCE OF THE EVIDENCE THAT THE FRAUDULENT
CONVEYANCE WAS NOT INTENTIONAL AND RESULTED WITHOUT THE PURCHASER'S
KNOWLEDGE;
(II) NOTIFIES THE OWNER OR OWNERS OF RECORD WITHIN NINETY DAYS OF THE
CONTRACT DATE OF THE CONVEYANCE; AND
(III) MAKES APPROPRIATE RESTITUTION TO THE OWNER OR OWNERS OF RECORD
AND APPROPRIATE ADJUSTMENTS TO THE TRANSACTION WITHIN NINETY DAYS OF THE
CONTRACT DATE.
S 4. Subdivision (c) of section 379 of the real property law, as
amended by chapter 640 of the laws of 1991, is amended to read as
follows:
(c) The names and places of residence with street number, if any, and
post-office addresses of all persons having or claiming any interest in
or lien upon the property, or any part thereof, the title to which is
sought to be registered, and whether or not any of them are infants or
otherwise incapacitated; THE NAMES AND ADDRESSES OF ANY THIRD PARTY
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DESIGNEE OF SUCH PERSONS, AS PROVIDED IN SECTION TWO HUNDRED
NINETY-TWO-B OF THIS CHAPTER; the owners in fee simple of the surround-
ing contiguous properties, and their post-office addresses so far as
they are known or can be reasonably ascertained by inquiry on such prop-
erty; the people of the state of New York; and a designation of all
other possible owners and claimants of the property or any right or
interest in or lien upon the property or any part thereof as "all other
persons, if any, having any right or interest in or lien upon the prop-
erty affected by this proceeding, or any part thereof." The petition
shall state so far as is known to the petitioner, what claim, if any,
the state of New York makes to the property in question or what inter-
est, if any, it has therein other than the general governmental interest
or such as exists as to all land in private ownership.
S 5. Section 412 of the real property law, as added by chapter 640 of
the laws of 1991, is amended to read as follows:
S 412. When a transfer is deemed to be registered. Every transfer of
registered property shall be deemed to be registered under this article
when such document has been filed of record, in the office of the
registrar of the county where the property is located and a serial
number and certificate number assigned to the instrument AND A WRITTEN
NOTICE OF SUCH TRANSFER HAS BEEN SENT BY SUCH OFFICE TO EACH OF THE
OWNER OR OWNERS OF RECORD OR INTERESTED PERSONS OF RECORD OR A THIRD
PARTY DESIGNEE OF SUCH OWNER OR OWNERS OF RECORD OR INTERESTED PERSON OF
RECORD TO SUCH REGISTERED PROPERTY; all other dealings shall be consid-
ered as registered when the document has been filed of record in the
office of the registrar of the county where the property is located and
a serial number and certificate number has been assigned the instrument.
THE PARTY REGISTERING SUCH TRANSFER SHALL BE RESPONSIBLE FOR THE COSTS
ASSOCIATED WITH THE MAILING OF SUCH WRITTEN NOTICE.
S 6. This act shall take effect on the ninetieth day after it shall
have become a law.