S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    551
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the real  property  law,  in  relation  to  establishing
   requirements for land contracts

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property law is amended by adding  a  new  section
 246-a to read as follows:
   §  246-A.  REQUIREMENTS  FOR  LAND  CONTRACTS.  1. DEFINITION. FOR THE
 PURPOSES OF THIS SECTION, "LAND CONTRACT" MEANS  ANY  WRITTEN  AGREEMENT
 EXECUTED  BETWEEN  A  BUYER AND SELLER OF RESIDENTIAL REAL PROPERTY OR A
 PARCEL OF REAL PROPERTY FOR RESIDENTIAL USE,  BY  INSTALLMENT  PAYMENTS,
 WITH  A  DEPOSIT  OF  ONE THOUSAND DOLLARS OR MORE, AND A TERM OF NINETY
 DAYS OR MORE, PURSUANT TO  WHICH  SUCH  BUYER  IS  RESPONSIBLE  FOR  ALL
 REPAIRS  UPON  THE  REAL  PROPERTY AND WILL BE GRANTED TITLE TO THE REAL
 PROPERTY UPON THE FULL PAYMENT OF THE STATED PURCHASE PRICE.  SUCH  TERM
 SHALL  NOT  INCLUDE A MORTGAGE PURSUANT TO WHICH THE SELLER EXECUTES AND
 RECORDS A DEED TO THE REAL  PROPERTY  UPON  THE  BUYER'S  EXECUTION  AND
 RECORDING  OF  A  MORTGAGE  UPON  THE REAL PROPERTY; NOR SHALL SUCH TERM
 INCLUDE A LEASE OF REAL PROPERTY PURSUANT TO WHICH THE LESSOR  IS  OBLI-
 GATED  TO  MAKE  REPAIRS AND PAY REAL PROPERTY TAXES UPON SUCH  PROPERTY
 UNTIL THE LESSEE TENDERS THE STATED PURCHASE PRICE.
   2. DISCLOSURE NOTICE. NOT LESS THAN TEN DAYS PRIOR TO THE EXECUTION OF
 A LAND CONTRACT, THE SELLER SHALL PROVIDE TO THE BUYER A WRITTEN  NOTICE
 DELIVERED  BY  CERTIFIED  MAIL.  SUCH  NOTICE  SHALL  BE  ENTITLED "LAND
 CONTRACT-CONSUMER CAUTION AND COUNSELING NOTICE" AND SHALL  INCLUDE  THE
 FOLLOWING NOTICES:
   (A)  "YOU  CAN LOSE THIS PROPERTY IF YOU FAIL TO MAKE THE PAYMENTS AND
 MEET THE OTHER REQUIREMENTS OF THE LAND CONTRACT.";
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06201-01-7

 S. 551                              2
 
   (B) "YOU CAN LOSE THIS PROPERTY IF THE SELLER OF THIS  PROPERTY  LOSES
 TITLE TO THIS PROPERTY DUE TO THE FORECLOSURE OF AN EXISTING MORTGAGE OR
 OTHER  LIEN,  OR  OTHER  LEGAL  ACTIONS WHICH MAY BE BROUGHT AGAINST THE
 SELLER BY CREDITORS OR OTHERS.";
   (C) "YOU CAN LOSE THIS PROPERTY IF OTHER PERSONS HAVE A LEGAL INTEREST
 OR CLAIM AGAINST THE PROPERTY.";
   (D)  "UNDER THE TERMS OF THIS CONTRACT YOU ARE RESPONSIBLE FOR REPAIRS
 TO THIS PROPERTY AND THEREFORE YOU SHOULD HAVE THE  PROPERTY  ADEQUATELY
 INSPECTED BEFORE ENTERING INTO THIS CONTRACT.";
   (E)  THE  NAME  AND  ADDRESSES  OF THE HOLDERS OF ANY MORTGAGES ON THE
 PROPERTY WHOSE CONSENT IS REQUIRED BEFORE THE PROPERTY CAN BE SOLD;
   (F) THE EXISTENCE OF ANY MORTGAGES OR LIENS OF RECORD ON THE PROPERTY;
 AND
   (G) THE UNPAID PROPERTY TAXES OR ASSESSMENTS ON SUCH PROPERTY, IF ANY.
   3. MANDATORY PROVISIONS. EVERY LAND CONTRACT SHALL PROVIDE:
   (A) THAT IF THE SELLER IS TO PROVIDE THE BUYER WITH  ESCROW  PAYMENTS,
 THE  SELLER  MUST  MAINTAIN  THE  ESCROW FUNDS IN A SEPARATE ACCOUNT AND
 PROVIDE THE BUYER WITH AN ANNUALIZED ACCOUNTING AND PROOF OF TAXES PAID;
   (B) THAT IF THE SELLER DOES NOT RECORD THE LAND CONTRACT  WITHIN  FIVE
 DAYS  OF  THE  EXECUTION  OF SUCH CONTRACT, THE BUYER SHALL BE GRANTED A
 RIGHT OF RECOVERY AGAINST THE SELLER FOR ALL  PAYMENTS  MADE  UNDER  THE
 LAND CONTRACT;
   (C)  THAT  THE  BUYER  MUST BE PROVIDED WITH A COPY OF THE RECEIPT FOR
 FILING THE LAND CONTRACT WITH THE COUNTY CLERK; AND
   (D) THAT THE SELLER MUST PROVIDE THE BUYER WITH WRITTEN  RECEIPTS  FOR
 ANY PAYMENTS MADE UNDER THE LAND CONTRACT, INCLUDING DOWN PAYMENTS.
   4.   RECORDING  REQUIREMENT.  WITHIN  FIVE  BUSINESS  DAYS  AFTER  THE
 EXECUTION OF A LAND CONTRACT, SUCH CONTRACT SHALL  BE  RECORDED  BY  THE
 SELLER  IN  THE  COUNTY  CLERK'S  OFFICE IN THE COUNTY IN WHICH THE REAL
 PROPERTY IS LOCATED. THE SELLER SHALL PROVIDE THE BUYER WITH A  COPY  OF
 THE RECEIPT ISSUED FOR SUCH RECORDING.
   5. PROHIBITED TERMS. NO LAND CONTRACT SHALL CONTAIN THE FOLLOWING:
   (A) A PROVISION WHICH IMPOSES EXCESSIVE LATE FEES;
   (B) A PROVISION IN WHICH THE BUYER CONSENTS TO HIS OR HER REMOVAL FROM
 THE CONTRACT BY THE BUYER WITHOUT THE OPTION OF JUDICIAL INTERVENTION OR
 A  PROVISION  IN  WHICH  THE  BUYER  AUTOMATICALLY  CONSENTS  TO SUMMARY
 PROCEEDINGS BY THE SELLER;
   (C) A PROVISION IN WHICH THE BUYER FORFEITS EQUITY  IN  THE  EVENT  OF
 DEFAULT; OR
   (D) A PROVISION WHICH WAIVES ANY OF THE PROVISIONS OF THIS SECTION.
   6.  ENFORCEMENT.  THE  ATTORNEY  GENERAL MAY COMMENCE AN ACTION IN THE
 NAME OF THE PEOPLE OF THE STATE OF NEW YORK TO ENFORCE THE TERMS OF THIS
 SECTION. A COURT MAY GRANT INJUNCTIVE, DECLARATORY  OR  OTHER  EQUITABLE
 RELIEF  IN  ANY  SUCH  ACTION  BROUGHT TO ENFORCE THE PROVISIONS OF THIS
 SECTION.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.