NY State Senate Bill 2015-S8058

Senate Bill S8058

2015-2016 Legislative Session

Requires notaries public and commissioners of deeds to complete and retain certain documents relating to the transfer of residential real property

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 08, 2016	referred to rules

2015-S8058 (ACTIVE) - Details

See Assembly Version of this Bill:: A10425
Current Committee:: Senate Rules
Law Section:: Executive Law
Laws Affected:: Add §135-c, amd §136, Exec L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S5756, A6246
2019-2020: S812, A5201
2021-2022: S4292, A4277
2023-2024: A329

2015-S8058 (ACTIVE) - Summary

Requires notaries public and commissioners of deeds to complete and retain certain documents relating to the transfer of residential real property.

2015-S8058 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S8058

 TITLE OF BILL :

An act to amend the executive law, in relation to the requirements for
notaries public and commissioners of deeds relating to certain
instruments affecting real property

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this bill is to prevent fraudulent deed transfers by
increasing the accountability of notaries who place their seal on
documents of conveyance that transfer ownership of residential real
property.

This bill establishes that notaries and commissioners of deeds whom
are not employed by a title insurance agency, law firm or financial
institution, and who are involved in executing a document of
conveyance, must file a notarial record of the notarial act. The bill
provides a template of the notarial record, which includes, among
other information, a description of the nature of the property, the
names of the parties involved in the transfer, and the form of
identification that was presented. The notary is required to file the
notarial record with the County Clerk or the Recorder of Deeds.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 of the bill adds a new section to the executive law that
requires notaries to complete a notarial record when they are
notarizing a document of conveyance. Subdivision 1 of the bill
describes who the bill applies to- all notaries licensed in New York
and recorder of deeds. Subdivision 2 of the section defines what types
of documents are included in the definition of a document of
conveyance. Subdivisions 3 and 4 of the section describe exactly what
information the notary is required to obtain from the individuals who
are using the notary's seal on a document to transfer ownership of
residential real property. Subdivision 5 establishes the requirement
that notaries file the notarial record with the County Clerk or the
Recorder of Deeds where the property is located within fourteen days
of the record's completion. Notaries who are employed through a title
insurance agency, law firm, financial institution, or who are working
as an attorney at law are required to keep the document as a business
record as opposed to filing with the clerk. Subdivisions 6 and 7
discuss how such record is to remain confidential and only available
in the limited circumstances of a government investigation, court
order, or a request from the grant or named in the record. Subdivision
8 establishes that if a notary fails to comply with the bills
provisions, the notary will be subject to a civil penalty of up to
$250 dollars. Subdivision 9 affirms that a notary's failure to comply,
however, will not invalidate the property transfer.

Section 2 of the bill permits notaries to charge up to $25 dollars
when notarizing a document of conveyance.

Section 3 establishes that this act will take effect immediately.

 JUSTIFICATION :

Huge spikes in real estate values and lax standards for property
transfers have left many homeowners vulnerable to deceptive practices
by individuals and entities seeking to defraud homeowners out of their
title to the home to make a profit. The two most common mechanisms of
deed theft are through forged deeds and fraudulently transferred
deeds. In the instances of a forged deed, the forger signs the
document conveying real property as both the seller and buyer without
any right to it. This type of theft typically affects properties in
which ownership has recently passed through inheritance and these deed
scammers quickly file the forged deed, which legitimizes their title,
and enables them to take possession of the premises. In the case of
fraudulently transferred deeds, homeowners sign over their deeds,
either knowingly or unknowingly, under the false pretenses proffered
by scammers. These individuals target homes in or nearing foreclosure
by approaching the vulnerable homeowners with promises of refinancing,
preventing foreclosure or some other financial relief, and some even
manipulate the homeowners to do a short-sale, by which they promise to
pay homeowners a sum of money to satisfy the outstanding mortgage in
exchange for short term title to the property which they in turn
promise to give back after the loan is repaid. Unwitting homeowners
are often left without a home and still owing their mortgages.

This bill seeks to prevent both scenarios by requiring the notary who
is present at the signing of the document of conveyance to fill out
and file a notarial record. This record will indicate among other
things the parties to the conveyance, the documents of identification
that are presented to the notary, and the relationship the grantee and
grantor have to one another. The rationale is that the creation of
such a document will encourage the notary to be vigilant in
identifying who the grantor and grantee are and the legitimacy of the
transaction. Furthermore, the filing of the record will assist in the
subsequent investigation and prosecution of fraudulent deed transfers
by identifying any pattern of fraudulent actors.

 PRIOR LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
The act takes effect immediately.

2015-S8058 (ACTIVE) - Bill Text download pdf

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

                                  8058

                            I N  S E N A T E

                              June 8, 2016
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the executive law, in relation to the  requirements  for
  notaries public and commissioners of deeds relating to certain instru-
  ments affecting real property

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

  Section 1. The executive law is amended by adding a new section  135-c
to read as follows:
  S  135-C.  REQUIREMENTS  OF NOTARIES PUBLIC AND COMMISSIONERS OF DEEDS
RELATED TO CERTAIN INSTRUMENTS AFFECTING REAL PROPERTY.  1. THIS SECTION
SHALL APPLY TO EVERY NOTARIAL ACT IN THE STATE INVOLVING A  DOCUMENT  OF
CONVEYANCE  THAT TRANSFERS OR PURPORTS TO TRANSFER TITLE WITH RESPECT TO
RESIDENTIAL REAL PROPERTY LOCATED IN THE STATE. IT SHALL ALSO  APPLY  TO
COMMISSIONERS  OF  DEEDS APPOINTED PURSUANT TO SECTION ONE HUNDRED FORTY
OF THIS ARTICLE.
  2. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
ING MEANINGS:
  A. "DOCUMENT OF CONVEYANCE"  SHALL  MEAN  A  WRITTEN  INSTRUMENT  THAT
TRANSFERS  OR PURPORTS TO TRANSFER TITLE EFFECTING A CHANGE IN OWNERSHIP
TO RESIDENTIAL REAL PROPERTY, EXCLUDING:
  (I) COURT ORDERED OR COURT-AUTHORIZED  TRANSFER  OF  RESIDENTIAL  REAL
PROPERTY  INCLUDING  BUT  NOT  LIMITED  TO A TRANSFER BETWEEN SPOUSES OR
FORMER SPOUSES AS A RESULT  OF  A  DECREE  OF  DIVORCE,  DISSOLUTION  OF
MARRIAGE,  ANNULMENT,  OR  LEGAL  SEPARATION, OR AS A RESULT OF PROPERTY
SETTLEMENT, OR AGREEMENT INCIDENTAL TO A DECREE OF DIVORCE,  DISSOLUTION
OF MARRIAGE, ANNULMENT, OR LEGAL SEPARATION;
  (II)  A TRANSFER ORDER BY A PROBATE COURT DURING THE ADMINISTRATION OF
A DECEDENT'S ESTATE;
  (III) A JUDGMENT OF A FORECLOSURE AND SALE, OR A LEVY PURSUANT  TO  AN
EXECUTION;
  (IV) A COURT ORDERED VOIDING OF AN INSTRUMENT AFFECTING REAL PROPERTY;
  (V)  A  TRANSFER OF PROPERTY TO A TRUST IN WHICH THE BENEFICIARY IS OR
INCLUDES THE GRANTOR; AND

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

                                                           LBD15643-03-6

S. 8058                             2

  (VI) A DEED FROM A GRANTOR TO HIMSELF OR HERSELF THAT IS  INTENDED  TO
CHANGE THE NATURE OR TYPE OF TENANCY BY WHICH HE OR SHE OWNS RESIDENTIAL
REAL PROPERTY.
  B.  "FINANCIAL  INSTITUTION" SHALL MEAN A BANK, TRUST COMPANY, SAVINGS
INSTITUTION, OR CREDIT UNION, CHARTERED AND SUPERVISED  UNDER  STATE  OR
FEDERAL LAW.
  C.  "NOTARIAL  RECORD"  SHALL  MEAN  THE  WRITTEN  DOCUMENT CREATED IN
CONFORMITY WITH THE REQUIREMENTS OF THIS SECTION.
  D. "RESIDENTIAL REAL PROPERTY" SHALL  MEAN  A  BUILDING  OR  BUILDINGS
CONSISTING OF ONE TO THREE DWELLING UNITS.
  E.  "SIGNATORY"  SHALL  MEAN  THE PERSON OR PERSONS WHOSE SIGNATURE IS
BEING ACKNOWLEDGED BY A NOTARY PUBLIC OR COMMISSIONER OF DEEDS.
  3. A NOTARY APPOINTED AND COMMISSIONED AS A NOTARY IN THIS STATE AND A
COMMISSIONER OF DEEDS SHALL CREATE A NOTARIAL RECORD  OF  EACH  NOTARIAL
ACT  PERFORMED IN CONNECTION WITH A DOCUMENT OF CONVEYANCE. THE NOTARIAL
RECORD SHALL CONTAIN:
  A. THE DATE OF THE NOTARIAL ACT;
  B. THE TYPE, TITLE OR DESCRIPTION OF THE DOCUMENT OF CONVEYANCE  BEING
NOTARIZED,  THE PROPERTY INDEX NUMBER ("PIN") USED TO IDENTIFY THE RESI-
DENTIAL REAL PROPERTY FOR  ASSESSMENT  OR  TAXATION  PURPOSES,  AND  THE
COMMON  STREET  ADDRESS  FOR  THE  RESIDENTIAL REAL PROPERTY THAT IS THE
SUBJECT OF THE DOCUMENT OF CONVEYANCE;
  C. THE SIGNATURE, PRINTED NAME AND RESIDENCE STREET  ADDRESS  OF  EACH
PERSON WHOSE SIGNATURE IS THE SUBJECT OF THE NOTARIAL ACT, AND A CERTIF-
ICATION  BY THE PERSON THAT THE PROPERTY IS RESIDENTIAL REAL PROPERTY AS
DEFINED IN THIS SECTION;
  D. A DESCRIPTION OF THE SATISFACTORY EVIDENCE REVIEWED BY  THE  NOTARY
OR  THE  COMMISSIONER  OF  DEEDS TO DETERMINE THE IDENTITY OF THE PERSON
WHOSE SIGNATURE  IS  THE  SUBJECT  OF  THE  NOTARIAL  ACT.  SATISFACTORY
EVIDENCE  SHALL  INCLUDE  PRESENTATION OF ANY ONE OF THE FOLLOWING DOCU-
MENTS IDENTIFYING THE SIGNATORY OR SIGNATORIES:
  (I) A VALID DRIVER'S LICENSE OR NON-DRIVER IDENTIFICATION CARD  ISSUED
BY  THE  COMMISSIONER  OF  MOTOR  VEHICLES,  THE FEDERAL GOVERNMENT, ANY
UNITED STATES TERRITORY, COMMONWEALTH OR  POSSESSION,  THE  DISTRICT  OF
COLUMBIA, OR A STATE GOVERNMENT WITHIN THE UNITED STATES;
  (II) A VALID PASSPORT ISSUED BY THE UNITED STATES GOVERNMENT;
  (III) A VALID PASSPORT ISSUED BY A FOREIGN GOVERNMENT; OR
  (IV)  A VALID MUNICIPAL IDENTIFICATION CARD ISSUED PURSUANT TO SECTION
3-115 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK; AND
  E. THE DATE OF NOTARIZATION, THE FEE CHARGED FOR THE NOTARIAL ACT, THE
NOTARY'S HOME OR BUSINESS PHONE NUMBER, THE NOTARY'S BUSINESS  OR  RESI-
DENCE  STREET  ADDRESS,  THE  NOTARY'S COMMISSION EXPIRATION DATE OR THE
COMMISSIONER OF DEEDS APPOINTMENT EXPIRATION  DATE,  THE  CORRECT  LEGAL
NAME  OF  THE  NOTARY'S  EMPLOYER  OR PRINCIPAL, AND THE BUSINESS STREET
ADDRESS OF THE NOTARY'S EMPLOYER OR PRINCIPAL.
  4. THE NOTARIAL  RECORD  REQUIRED  UNDER  SUBDIVISION  THREE  OF  THIS
SECTION  SHALL  BE  CREATED  AND MAINTAINED FOR EACH PERSON OR REPRESEN-
TATIVE WHOSE SIGNATURE IS THE SUBJECT OF  A  NOTARIAL  ACT  REGARDING  A
DOCUMENT OF CONVEYANCE. IT SHALL BE IN SUBSTANTIALLY THE FOLLOWING FORM:
NOTARIAL RECORD:
                              DEED TRANSFER
I,  ________________________(GRANTOR)  HEREBY  AUTHORIZE THE TRANSFER OF
OWNERSHIP OF MY PROPERTY TO THE GRANTEE DESIGNATED BELOW. I UNDERSTAND I
MAY BE TRANSFERRING OWNERSHIP OF MY HOME.
DATE NOTARIZED:
FEE: $

S. 8058                             3

THE UNDERSIGNED GRANTOR HEREBY CERTIFIES THAT THE REAL PROPERTY  IDENTI-
FIED  IN THIS NOTARIAL RECORD IS RESIDENTIAL REAL PROPERTY AS DEFINED IN
SECTION 135-C OF THE EXECUTIVE LAW.
GRANTOR'S (SIGNER'S) PRINTED NAME:
GRANTOR'S (SIGNER'S) SIGNATURE:
GRANTOR'S  (SIGNER'S)  RESIDENTIAL  STREET  ADDRESS, CITY, STATE AND ZIP
CODE:
GRANTEE'S RELATIONSHIP TO GRANTOR:
GRANTEE'S (SIGNER'S) PRINTED NAME:
GRANTEE'S (SIGNER'S) SIGNATURE:
GRANTEE'S (SIGNER'S) RESIDENTIAL STREET ADDRESS,  CITY,  STATE  AND  ZIP
CODE:
TYPE OR NAME OF DOCUMENT OF CONVEYANCE:
PIN NO. OF RESIDENTIAL REAL PROPERTY:
COMMON STREET ADDRESS OF RESIDENTIAL REAL PROPERTY:
DESCRIPTION OF MEANS OF IDENTIFICATION:
ADDITIONAL COMMENTS:
NAME OF NOTARY OR COMMISSIONER OF DEEDS PRINTED:
NOTARY PHONE NUMBER:
COMMISSION OR APPOINTMENT EXPIRATION DATE:
STREET ADDRESS OF NOTARY, CITY, STATE AND ZIP CODE:
NAME OF NOTARY'S EMPLOYER OR PRINCIPAL:
BUSINESS  STREET  ADDRESS OF NOTARY'S EMPLOYER OR PRINCIPAL, CITY, STATE
AND ZIP CODE:
  5. FILING OF THE NOTARIAL RECORD. THE NOTARY OR COMMISSIONER OF  DEEDS
SHALL  FILE  THE  NOTARIAL  RECORD IN ACCORDANCE WITH THE PROCEDURES SET
FORTH IN THIS SUBDIVISION.
  A. EXCEPT AS PROVIDED IN PARAGRAPH B OF THIS SUBDIVISION, THE NOTARIAL
RECORD SHALL BE DELIVERED NO  LATER  THAN  FOURTEEN  DAYS  AFTER  IT  IS
CREATED  TO  THE  CLERK  OR OFFICE OF THE REGISTER OF THE COUNTY OR CITY
WITHIN WHICH THE RESIDENTIAL PROPERTY THAT IS THE SUBJECT OF THE CONVEY-
ANCE IS LOCATED.
  B. IF THE NOTARIAL RECORD WAS CREATED BY A NOTARY PUBLIC IN THE  SCOPE
OF HIS OR HER WORK FOR A TITLE INSURANCE COMPANY, TITLE INSURANCE AGENT,
FINANCIAL  INSTITUTION,  LAW  FIRM OR ATTORNEY AT LAW, THE NOTARY PUBLIC
SHALL DELIVER THE NOTARIAL RECORD NO LATER THAN FOURTEEN DAYS  AFTER  IT
IS  CREATED  TO SUCH TITLE INSURANCE COMPANY, FINANCIAL INSTITUTION, LAW
FIRM OR ATTORNEY AT LAW.  SUCH TITLE INSURANCE COMPANY, FINANCIAL INSTI-
TUTION, LAW FIRM OR ATTORNEY AT LAW, OR ANY  SUCCESSOR  OR  ASSIGNEE  OF
SUCH  TITLE INSURANCE COMPANY, FINANCIAL INSTITUTION, LAW FIRM OR ATTOR-
NEY AT LAW WITHIN THE SEVEN-YEAR  RETENTION  PERIOD,  SHALL  RETAIN  THE
NOTARIAL  RECORD  AND  MAY  DISCLOSE SUCH RECORD ONLY AS PERMITTED UNDER
SUBDIVISION SEVEN OF THIS SECTION.
  6. THE NOTARIAL RECORD SHALL BE RETAINED FOR SEVEN YEARS IN ACCORDANCE
WITH THE PROCEDURES DESCRIBED IN SUBDIVISION FIVE OF  THIS  SECTION  AND
WITH THE CONFIDENTIALITY AND DISCLOSURE PROVISIONS ESTABLISHED IN SUBDI-
VISION  SEVEN OF THIS SECTION. NO COPIES OF THE ORIGINAL NOTARIAL RECORD
MAY BE MADE OR RETAINED BY THE NOTARY. THE NOTARY'S EMPLOYER OR  PRINCI-
PAL  PURSUANT  TO  PARAGRAPH B OF SUBDIVISION FIVE OF THIS SECTION, OR A
NOTARY ATTORNEY ACTING WITHIN THE SCOPE OF HIS  OR  HER  EMPLOYMENT  MAY
RETAIN  COPIES  OF  THE NOTARIAL RECORDS AS BUSINESS RECORDS, SUBJECT TO
APPLICABLE PRIVACY AND CONFIDENTIALITY STANDARDS OUTLINED IN SUBDIVISION
SEVEN OF THIS SECTION.
  7. THE NOTARIAL RECORD SHALL NOT BE DISCLOSED NOR SHALL  ITS  CONTENTS
BE MADE KNOWN EXCEPT AS PROVIDED IN THIS SUBDIVISION.

S. 8058                             4

  A.  A  CERTIFIED  COPY  OF  A NOTARIAL RECORD SHALL BE PROVIDED TO THE
UNITED STATES OR ANY DEPARTMENT THEREOF, THE  STATE  OR  ANY  DEPARTMENT
THEREOF,  AND  THE  CITY OF NEW YORK OR ANY DEPARTMENT THEREOF, PROVIDED
THAT SUCH NOTARIAL RECORD IS REQUIRED FOR OFFICIAL BUSINESS.
  B.  A CERTIFIED COPY OF A NOTARIAL RECORD SHALL BE PROVIDED IN ACCORD-
ANCE WITH A JUDICIAL ORDER.
  C. UPON WRITTEN REQUEST BY THE GRANTOR OR A  LEGAL  REPRESENTATIVE  OF
THE GRANTOR WHO IS NAMED IN THE NOTARIAL RECORD.
  8.  ANY  PERSON  OR  ENTITY  VIOLATING  THE PROVISIONS OF THIS SECTION
SHALL, IN ADDITION TO ALL OTHER PENALTIES PROVIDED BY LAW, BE LIABLE FOR
A CIVIL PENALTY OF UP  TO  TWO  HUNDRED  FIFTY  DOLLARS  FOR  EACH  SUCH
VIOLATION.  THE  SECRETARY OF STATE MAY ASSESS SUCH PENALTY FOLLOWING AN
ADJUDICATORY PROCEEDING CONDUCTED IN ACCORDANCE WITH THE STATE  ADMINIS-
TRATIVE PROCEDURE ACT.
  9.  THE  FAILURE OF A NOTARY OR A COMMISSIONER OF DEEDS TO COMPLY WITH
THE PROCEDURE SET FORTH IN THIS SECTION SHALL NOT AFFECT THE VALIDITY OF
THE RESIDENTIAL REAL PROPERTY TRANSACTION IN  CONNECTION  TO  WHICH  THE
DOCUMENT OF CONVEYANCE IS EXECUTED, IN THE ABSENCE OF FRAUD.
  S  2.  Section  136  of  the  executive law is amended by adding a new
subdivision 3 to read as follows:
  3. FOR PERFORMING A NOTARIAL ACT RELATED TO A DOCUMENT  OF  CONVEYANCE
FOR  WHICH A NOTARIAL RECORD IS REQUIRED PURSUANT TO SECTION ONE HUNDRED
THIRTY-FIVE-C OF THIS ARTICLE, THE NOTARY OR COMMISSIONER OF  DEEDS  MAY
CHARGE  A FEE OF TWENTY-FIVE DOLLARS IN ADDITION TO ANY FEES REQUIRED TO
FILE THE NOTARIAL RECORD.
  S 3. This act shall take effect immediately.

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