Assembly Bill A1785

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1785
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2017
                                ___________
 
 Introduced  by M. of A. PERRY -- Multi-Sponsored by -- M. of A. BENEDET-
   TO, COLTON, GALEF, HIKIND, ROSENTHAL, TITUS -- 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:
   § 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04243-01-7

 A. 1785                             2
 
 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, YOU SHOULD OBTAIN LEGAL
 COUNSEL. IF YOU BELIEVE YOU ARE A VICTIM OF  A  CRIME  RELATED  TO  THIS
 RECORDING,  CONTACT YOUR LOCAL LAW ENFORCEMENT AGENCY OR, IF IN THE CITY
 OF NEW YORK, THE OFFICE OF THE SHERIFF."
 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.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.