NY State Senate Bill S812

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
In Committee
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- Passed Senate
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Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (6)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to finance
Jun 20, 2019	committed to rules
May 13, 2019	advanced to third reading
May 08, 2019	2nd report cal.
May 07, 2019	1st report cal.596
Jan 09, 2019	referred to finance

Votes

view votes

May 7, 2019 - Finance committee Vote

S812

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Co-Sponsors

S812 (ACTIVE) - Details

See Assembly Version of this Bill:: A5201
Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Add §135-c, amd §136, Exec L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S8058, A10425
2017-2018: S5756, A6246
2021-2022: S4292, A4277
2023-2024: A329

S812 (ACTIVE) - Summary

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

S812 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S812

SPONSOR: LANZA
 
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 instru-
ments affecting real property

 
PURPOSE OF BILL:

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

This bill establishes that notaries and commissioners of deeds whom are
not employed by a title insurance agency, law firm or financial institu-
tion, 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: Adds a new section to the executive law that requires nota-
ries 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 docu-
ment 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 institu-
tion, 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 investi-
gation, 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: 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 trans-
fers 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 convey-
ing 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 unknowing-
ly, under the false pretenses proffered by scammers.  These individuals
target homes in or nearing foreclosure by approadhing the vulnerable
homeowners with promises of refinancing, preventing foreclosure or some
her 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 docu-
ment will encourage the notary to be vigilant in identifying who the
grantor and grantee are and the legitimacy of the transaction. Further
more, the filing of the record will assist in the subsequent investi-
gation and prosecution of fraudulent deed transfers by identifying any
pattern of fraudulent actors.

 
LEGISLATIVE HISTORY:

2018: S.5756-A - Referred to Finance/A.62476-A- Third Reading Calendar
2017: S.5756-A - Referred to Finance/A.6246-A- Third Reading Calendar
2016: S.8058 - Referred to Rules / A.104252-A -Third Reading Calendar

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
The act takes effect immediately.

S812 (ACTIVE) - Bill Text download pdf


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

                                   812

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                             January 9, 2019
                               ___________

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

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:
  §  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;

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

                                                           LBD05942-01-9

S. 812                              2

  (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
  (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 WHERE THE SQUARE FOOTAGE OF
THE RESIDENTIAL PORTION EXCEEDS THE SQUARE  FOOTAGE  OF  ANY  COMMERCIAL
PORTION.
  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  BLOCK  AND  LOT NUMBER USED TO IDENTIFY THE RESIDENTIAL
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

S. 812                              3

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: $
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

S. 812                              4

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.
  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.
  §  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.
  § 3. This act shall take effect immediately.

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The New York State Senate

senate Bill S812

Sponsored By

Archive: Last Bill Status - In Senate Committee Finance Committee

Your Voice

Actions

Votes

May 7, 2019 - Finance committee Vote

Finance Committee Vote: May 7, 2019

Co-Sponsors

S812 (ACTIVE) - Details

S812 (ACTIVE) - Summary

S812 (ACTIVE) - Sponsor Memo

S812 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S812

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Sponsored By

Andrew J. Lanza

Archive: Last Bill Status - In Senate Committee Finance Committee

Your Voice

Actions

Votes

May 7, 2019 - Finance committee Vote

Finance Committee Vote: May 7, 2019

Co-Sponsors

Liz Krueger

S812 (ACTIVE) - Details

S812 (ACTIVE) - Summary

S812 (ACTIVE) - Sponsor Memo

S812 (ACTIVE) - Bill Text download pdf

Comments