S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1224
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2023
                                ___________
 
 Introduced  by Sens. BORRELLO, OBERACKER, ORTT -- read twice and ordered
   printed, and when printed to be committed to the Committee on  Judici-
   ary
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03975-01-3
              

 S. 1224                             2
 
 as so increased provided that any such mortgage  instrument  sets  forth
 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.