S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1312
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 11, 2021
                                ___________
 
 Introduced  by Sen. GAUGHRAN -- 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 removing the  word
   residential from notices of conveyance of real 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
 641 of the laws of 2019, is amended to read as follows:
   § 291. Recording of conveyances. A conveyance of real property, within
 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 situated,
 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  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 there-
 from  as  provided in section two hundred ninety-four-a of this article,
 in good faith and for a valuable consideration, from the same vendor  or
 assignor,  his  distributees or devisees, and whose conveyance, contract
 or assignment is first duly recorded, and is void as  against  the  lien
 upon the same real property 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 forego-
 ing, 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 mortgage shall retain the priority of the original mortgage  lien
 as  so  increased  provided that any such mortgage instrument sets forth
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04601-01-1

 S. 1312                             2
 
 its terms of repayment. The clerk of the county or city registrar  where
 such  conveyance  of  [residential]  real property is recorded and main-
 tained 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 clerk of the county or city registrar is entitled to
 charge a reasonable fee to cover the cost of mailing the envelope to the
 owner of record. 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 immediately.