Assembly Bill A6685B

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6685

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 30, 2015
                               ___________

Introduced  by M. of A. PERRY -- Multi-Sponsored by -- M. of A. BENEDET-
  TO, BROOK-KRASNY, CLARK,  COLTON,  GALEF,  HIKIND,  ROSENTHAL,  TITUS,
  WRIGHT -- read once and referred to the Committee on Judiciary

AN  ACT to amend the real property law, in relation to notice of sale or
  transfer of ownership of residential property

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. 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.   [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 therefrom as provided in section two hundred  ninety-
four-a  of  the  real  property  law,  in  good faith and for a valuable
consideration, from the same vendor or  assignor,  his  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 distribu-
tees or devisees, if such contract is made in good faith  and  is  first
duly recorded.  Notwithstanding the foregoing, any increase in the prin-
cipal  balance  of  a mortgage lien by virtue of the addition thereto of
unpaid interest in accordance with  the  terms  of  the  mortgage  shall

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03554-01-5
              

A. 6685                             2

retain  the  priority  of  the  original  mortgage  lien as so increased
provided that any such mortgage  instrument  sets  forth  its  terms  of
repayment.] THE CLERK OF THE COUNTY OR CITY REGISTRAR WHERE SUCH CONVEY-
ANCE  OF RESIDENTIAL REAL PROPERTY IS RECORDED AND MAINTAINED SHALL MAIL
A WRITTEN NOTICE OF SUCH CONVEYANCE TO THE OWNER OF RECORD.  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 OF RECORD  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

IF  YOU  HAVE ANY QUESTIONS REGARDING THE VALIDITY OF THE DOCUMENTS, AND
WISH TO DISPUTE THE RECORDING 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.
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.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6685--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 30, 2015
                               ___________

Introduced  by M. of A. PERRY -- Multi-Sponsored by -- M. of A. BENEDET-
  TO, COLTON, GALEF, HIKIND, ROSENTHAL, TITUS, WRIGHT -- read  once  and
  referred to the Committee on Judiciary -- recommitted to the Committee
  on  Judiciary  in accordance with Assembly Rule 3, sec. 2 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the real property law, in relation to notice of sale  or
  transfer of ownership of residential property

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. 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.   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 therefrom as provided in section two hundred ninety-
four-a of [the real property law] THIS ARTICLE, in good faith and for  a
valuable  consideration, from the same vendor or assignor, his distribu-
tees or devisees, and whose conveyance, contract or assignment is  first
duly  recorded, and is void as against the lien upon the same real prop-
erty 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 distributees or devisees, if such contract is made  in  good

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03554-02-6
              

A. 6685--A                          2

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.    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 TO THE OWNER OF RECORD.
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 OF RECORD  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

IF  YOU  HAVE ANY QUESTIONS REGARDING THE VALIDITY OF THE DOCUMENTS, AND
WISH TO DISPUTE THE RECORDING OF THE TRANSFER, PLEASE CONTACT THE COUNTY
CLERK'S OR CITY REGISTRAR'S OFFICE AS SOON AS POSSIBLE."
THE PARTY SEEKING TO RECORD SUCH CONVEYANCE SHALL BEAR THE COST OF  SUCH
WRITTEN  NOTICE.    THE  PARTY  SEEKING  TO  RECORD THE CONVEYANCE SHALL
SUBMIT, CONTEMPORANEOUSLY WITH THE FILING OF THE DOCUMENT OF CONVEYANCE,
A PRE-STAMPED ENVELOPE BEARING SUFFICIENT POSTAGE TO MAIL A LARGE ENVEL-
OPE BY FIRST CLASS MAIL.  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.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.