The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2403
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 Introduced  by  M.  of  A. J. M. GIGLIO -- read once and referred to the
   Committee on Judiciary
 
 AN ACT to amend the real property law, in relation to excluding  certain
   real property conveyances from the written notice requirement
 
   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.
                                                            LBD03975-01-3

 A. 2403                             2
 
 its terms of repayment. The clerk of the county or city registrar  where
 such  conveyance of residential real property is recorded and maintained
 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.  CONVEYANCES BY THE STATE OF NEW YORK OR ANY OF ITS  POLI-
 TICAL  SUBDIVISIONS  IN  CONJUNCTION  WITH  A  FORECLOSURE OF A TAX LIEN
 PURSUANT TO A PROCEEDING IN REM UNDER TITLE THREE OF ARTICLE  ELEVEN  OF
 THE REAL PROPERTY TAX LAW SHALL NOT REQUIRE WRITTEN NOTICE.
   § 2. This act shall take effect immediately.