NY State Senate Bill 2019-S812

Senate Bill S812

2019-2020 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 Finance 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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Actions

View Actions

	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

- May 7, 2019 - Finance Committee Vote
  S812
  
  20
  
  Aye
  
  0
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Finance Committee Vote: May 7, 2019
      
      aye (20)
      
      Antonacci
      
      Bailey
      
      Benjamin
      
      Breslin
      
      Comrie
      
      Hoylman-Sigal
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Little
      
      Liu
      
      Montgomery
      
      Parker
      
      Rivera
      
      Robach
      
      Savino
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Thomas
      
      aye wr (3)
      
      LaValle
      
      Ranzenhofer
      
      Ritchie

co-Sponsors

2019-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
2025-2026: A6441

2019-S812 (ACTIVE) - Summary

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

2019-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.

2019-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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Senate Bill S812

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Sponsored By

Andrew J. Lanza