Assembly Bill A2744

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2744
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2025
                                ___________
 
 Introduced by M. of A. JACOBSON -- read once and referred to the Commit-
   tee on Housing
 
 AN  ACT to amend the real property law, in relation to notice of record-
   ing of certain documents relating to real estate in  counties  outside
   the city of New York
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property law is amended by adding  a  new  section
 291-k to read as follows:
   § 291-K. NOTICE OF THE RECORDING OF CERTAIN DOCUMENTS RELATING TO REAL
 PROPERTY. 1. AS USED IN THIS SECTION:
   (A)  "DEED-RELATED  DOCUMENT" INCLUDES, BUT IS NOT LIMITED TO, A DEED,
 AIR RIGHTS, CONDEMNATION PROCEEDING AGREEMENT, CONDOMINIUM  DECLARATION,
 CONFIRMATORY  DEED,  CONTRACT  OF SALE, CORRECTION DEED, COURT ORDER, IN
 REM DEED, JUDGMENT, LIFE ESTATE DEED, MEMORANDUM OF CONTRACT,  POWER  OF
 ATTORNEY,  REAL  ESTATE  INVESTMENT  TRUST  DEED, REVOCATION OF POWER OF
 ATTORNEY, SUNDRY AGREEMENT, UNIT ASSIGNMENT AND ANY OTHER DOCUMENT  THAT
 MAY  BE  DESIGNATED  AS DEED-RELATED BY THE COMMISSIONER OF TAXATION AND
 FINANCE;
   (B) "INTERESTED PARTY" MEANS THE PROPERTY OWNER, THE PROPERTY  OWNER'S
 AGENT  OR  ATTORNEY  OR  DESIGNEE,  THE  PROPERTY  LIENOR,  THE PROPERTY
 LIENOR'S AGENT OR ATTORNEY, THE EXECUTOR OR ADMINISTRATOR OF THE  ESTATE
 OF  THE  OWNER  OR  LIENOR OF THE PROPERTY, THE AGENT OR ATTORNEY OF THE
 EXECUTOR OR ADMINISTRATOR OF THE ESTATE OF THE OWNER OR  LIENOR  OF  THE
 PROPERTY  AND ANY OTHER INDIVIDUAL THAT MAY BE DESIGNATED BY THE COMMIS-
 SIONER OF TAXATION AND FINANCE; AND
   (C) "MORTGAGE-RELATED DOCUMENT" INCLUDES, BUT IS  NOT  LIMITED  TO,  A
 MORTGAGE,  COLLATERAL  MORTGAGE,  MORTGAGE  AND  CONSOLIDATION, MORTGAGE
 SPREADER AGREEMENT, SATISFACTION OF MORTGAGE, SUBORDINATION OF MORTGAGE,
 SUNDRY MORTGAGE, UCC-1 (FINANCING STATEMENT),  AND  ANY  OTHER  DOCUMENT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05481-01-5
 A. 2744                             2
              

 
 THAT  MAY BE DESIGNATED AS MORTGAGE-RELATED BY THE COMMISSIONER OF TAXA-
 TION AND FINANCE.
   2.  (A)  THE  DEPARTMENT  OF  TAXATION AND FINANCE SHALL ESTABLISH AND
 MAINTAIN A SYSTEM FOR USE BY THE CLERK OF EACH COUNTY IN THE STATE  THAT
 PROVIDES  THE  ABILITY  FOR THE CLERK TO SEND NOTIFICATION TO ANY INTER-
 ESTED PARTY THAT A DEED-RELATED OR MORTGAGE-RELATED  DOCUMENT  AFFECTING
 SUCH  PARTY'S  INTEREST  IN  REAL PROPERTY LOCATED IN THE STATE HAS BEEN
 RECORDED AGAINST SUCH PROPERTY WITH THE OFFICE OF THE CLERK OF THE COUN-
 TY IN WHICH THE REAL PROPERTY IS  SITUATED.    THE  PROVISIONS  OF  THIS
 SECTION SHALL NOT APPLY TO COUNTIES LOCATED WITHIN A CITY HAVING A POPU-
 LATION OF ONE MILLION OR MORE PERSONS.
   (B)  TO  RECEIVE  THE  NOTIFICATION DESCRIBED IN PARAGRAPH (A) OF THIS
 SUBDIVISION, AN INTERESTED PARTY MAY REGISTER WITH  THE  OFFICE  OF  THE
 CLERK OF THE COUNTY WHERE REAL PROPERTY IS SITUATED, IN A FORMAT PROMUL-
 GATED BY THE COMMISSIONER OF TAXATION AND FINANCE.
   (C)  IN THE EVENT THAT A DEED-RELATED OR MORTGAGE-RELATED DOCUMENT HAS
 BEEN RECORDED AGAINST SUCH PROPERTY, THE OFFICE OF THE COUNTY CLERK,  TO
 THE  EXTENT  PRACTICABLE,  WILL SEND NOTICE TO THE INTERESTED PARTY. THE
 NOTICE SHALL BE SENT BY FIRST CLASS MAIL. NOTICE SHALL ALSO BE  SENT  TO
 THE  INTERESTED  PARTY  BY  EMAIL  AND/OR  SMS (TEXT) PROVIDED THE OWNER
 PROVIDES AN EMAIL ADDRESS AND/OR A MOBILE NUMBER.
   (D) THE NOTIFICATION TO THE INTERESTED PARTY SHALL INCLUDE INFORMATION
 ON ACTIONS SUCH INTERESTED PARTY COULD TAKE  IF  SUCH  INTERESTED  PARTY
 SUSPECTS THAT A FRAUDULENT DOCUMENT HAS BEEN RECORDED, INCLUDING BUT NOT
 LIMITED  TO,  INFORMATION ABOUT WHOM TO CONTACT FOR ASSISTANCE, FILING A
 COMPLAINT OR  REPORTING  AN  ALLEGED  CRIMINAL  VIOLATION.  NEITHER  THE
 DEPARTMENT  OF  TAXATION AND FINANCE NOR THE COUNTY CLERK SHALL CHARGE A
 FEE FOR USE OF SUCH NOTIFICATION SYSTEM.
   3. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO CREATE AN ENFORCEABLE
 RIGHT IN ANY INDIVIDUAL TO RECEIVE THE NOTICE DESCRIBED  IN  SUBDIVISION
 TWO  OF  THIS SECTION. THE FAILURE OF A COUNTY CLERK'S OFFICE TO PROVIDE
 THE NOTICE DESCRIBED IN THIS SECTION, OR THE FAILURE OF A REAL  PROPERTY
 OWNER TO RECEIVE SUCH A NOTICE SHALL NOT:
   (A)  RESULT  IN ANY LIABILITY OF THE COUNTY CLERK'S OFFICE, THE COUNTY
 WHERE THE REAL PROPERTY IS SITUATED,  THE  DEPARTMENT  OF  TAXATION  AND
 FINANCE OR THE STATE;
   (B)  PREVENT  THE  LEVY,  COLLECTION  AND  ENFORCEMENT OF TAXES ON THE
 AFFECTED REAL PROPERTY;
   (C) INVALIDATE ANY PROCEEDINGS OR FILINGS WITH RESPECT TO THE AFFECTED
 REAL PROPERTY; AND
   (D) PREVENT THE STATE OF NEW YORK FROM TAKING  ANY  ACTIONS  UNDER  OR
 ENFORCING ANY PROVISION OF LAW OR RULE.
   4.  THE  DEPARTMENT  OF TAXATION AND FINANCE SHALL CONDUCT OUTREACH TO
 PROPERTY OWNERS IN THE STATE ABOUT THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect on the first of January next  succeed-
 ing the date upon which it shall have become a law. Effective immediate-
 ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
 necessary for the implementation of this act on its effective  date  are
 authorized to be made and completed on or before such effective date.