S T A T E O F N E W Y O R K
________________________________________________________________________
7579
2021-2022 Regular Sessions
I N A S S E M B L Y
May 14, 2021
___________
Introduced by M. of A. O'DONNELL -- read once and referred to the
Committee on Judiciary
AN ACT to amend the real property actions and proceedings law and the
real property tax law, in relation to requiring the court in a fore-
closure action to provide notice to the former owner of the real prop-
erty of the right to apply for surplus moneys from the sale of such
property
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1354 of the real property actions and proceedings
law is amended by adding a new subdivision 5 to read as follows:
5. THE COURT SHALL PROVIDE NOTICE TO THE FORMER OWNER OR OWNERS OF THE
FORECLOSED REAL PROPERTY OF THE EXISTENCE OF SURPLUS MONEYS RESULTING
FROM THE SALE AND THEIR RIGHT TO FILE A WRITTEN NOTICE OF CLAIM TO ALL
OR A PORTION OF SUCH PROCEEDS PURSUANT TO SECTION THIRTEEN HUNDRED
SIXTY-ONE OF THIS ARTICLE.
§ 2. Section 1136 of the real property tax law is amended by adding a
new subdivision 4 to read as follows:
4. NOTICE TO FORMER OWNERS. IN THE EVENT THE COURT DIRECTS THE SALE OF
REAL PROPERTY PURSUANT TO THIS SECTION, THE COURT SHALL PROVIDE NOTICE
TO THE FORMER OWNER OR OWNERS OF THE FORECLOSED REAL PROPERTY THAT
OWNERSHIP OF SUCH PROPERTY HAS BEEN TRANSFERRED TO A MUNICIPALITY OR A
TAX DISTRICT, THAT AFTER THE SALE THEREOF THERE IS A POTENTIAL THAT
SURPLUS MONEYS MAY RESULT FROM THE SALE AND IN THE EVENT A SURPLUS
RESULTS, SUCH OWNER OR OWNERS SHALL HAVE A RIGHT TO FILE A WRITTEN
NOTICE OF CLAIM TO ALL OR A PORTION OF SUCH PROCEEDS PURSUANT TO SECTION
THIRTEEN HUNDRED SIXTY-ONE OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS
LAW.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06340-01-1