S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7589
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 1, 2025
                                ___________
 
 Introduced  by M. of A. TAPIA -- read once and referred to the Committee
   on Judiciary
 
 AN ACT to amend the general obligations law, in  relation  to  declaring
   any  conveyances of real property to a landlord identified on the city
   of New York's office of the public advocate's worst landlord watchlist
   as void as against public policy

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivisions 1 and 3 of section 5-101 of the general obli-
 gations law are amended to read as follows:
   1. As used in sections 5-331, 5-331.1,  5-703  and  5-1115,  the  term
 "conveyance"  includes  every  instrument, in writing, except a will, by
 which any estate or interest in real property is  created,  transferred,
 assigned or surrendered.
   3. As used in sections 5-321, 5-323, 5-331, 5-331.1, 5-703 and 5-1115,
 the  term  "real  property" is co-extensive in meaning with lands, tene-
 ments and hereditaments.
   § 2. The general obligations law is amended by adding  a  new  section
 5-331.1 to read as follows:
   § 5-331.1. CERTAIN CONVEYANCES OF REAL PROPERTY VOID AS AGAINST PUBLIC
 POLICY.  1.  FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (A) "AFFILIATED ENTITY" MEANS ANY ENTITY IN  WHICH  AN  INDIVIDUAL  OR
 OTHER  ENTITY HAS A CONTROLLING INTEREST OR THAT IS OTHERWISE CONTROLLED
 BY, OR ACTING AT THE DIRECTION OF, SUCH OTHER ENTITY.
   (B) "COVERED PROPERTY" MEANS ANY RESIDENTIAL OR MIXED-USE REAL PROPER-
 TY OR PORTION THEREOF IN THE STATE OF NEW YORK.
   (C) "WORST LANDLORD WATCHLIST" MEANS THE LIST THE CITY OF  NEW  YORK'S
 OFFICE  OF  THE PUBLIC ADVOCATE'S MOST RECENTLY PUBLISHED WORST LANDLORD
 WATCHLIST.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11217-01-5
 A. 7589                             2
              

 
   2. ANY CONVEYANCE OF A COVERED PROPERTY MADE TO AN INDIVIDUAL, ENTITY,
 OR BENEFICIAL OWNER IDENTIFIED ON THE WORST LANDLORD WATCHLIST SHALL  BE
 VOID  AS  AGAINST PUBLIC POLICY. SUCH RESTRICTION SHALL APPLY TO CONVEY-
 ANCES MADE DIRECTLY OR INDIRECTLY, INCLUDING BUT NOT LIMITED TO, THROUGH
 AFFILIATED  ENTITIES,  TRUSTS, OR LIMITED LIABILITY COMPANIES WHERE SUCH
 INDIVIDUAL, ENTITY, OR BENEFICIAL OWNER  HOLDS  TWENTY-FIVE  PERCENT  OR
 MORE BENEFICIAL OWNERSHIP.
   3. ANY CONVEYANCE MADE IN VIOLATION OF SUBDIVISION TWO OF THIS SECTION
 SHALL  BE  DEEMED  VOID  BY THE ATTORNEY GENERAL, A MUNICIPALITY, OR ANY
 INTERESTED PARTY. ANY PARTY THAT KNOWINGLY CONVEYS A COVERED PROPERTY IN
 VIOLATION OF SUBDIVISION TWO OF THIS SECTION SHALL BE SUBJECT TO A CIVIL
 PENALTY OF UP TO FIFTY THOUSAND DOLLARS PER SUCH CONVEYANCE. THE  ATTOR-
 NEY  GENERAL  SHALL BE AUTHORIZED TO SEEK INJUNCTIVE RELIEF FOR ANY SUCH
 VIOLATION, INCLUDING BUT NOT LIMITED TO, DIVESTITURE OF SUCH  UNLAWFULLY
 CONVEYED COVERED PROPERTY.
   4.  (A)  UPON THE CONVEYANCE OF ANY COVERED PROPERTY, OTHER THAN WHERE
 THE PURCHASER OF SUCH COVERED PROPERTY IS PURCHASING SUCH COVERED  PROP-
 ERTY  FOR THEIR PRIMARY RESIDENCE, THE PURCHASER SHALL SUBMIT AN AFFIDA-
 VIT AT THE TIME OF DEED RECORDING AFFIRMING THAT NEITHER  THE  PURCHASER
 NOR ANY BENEFICIAL OWNER IS IDENTIFIED ON THE WORST LANDLORD WATCHLIST.
   (B)  THE COUNTY CLERK SHALL NOT RECORD ANY DEED FOR A COVERED PROPERTY
 FOR WHICH AN AFFIDAVIT IS REQUIRED TO BE SUBMITTED UNDER  PARAGRAPH  (A)
 OF THIS SUBDIVISION PRIOR TO RECEIPT OF SUCH AFFIDAVIT.
   5.  THE  CITY OF NEW YORK'S OFFICE OF THE PUBLIC ADVOCATE SHALL SUBMIT
 THE MOST RECENT VERSION OF THE WORST LANDLORD WATCHLIST TO THE  ATTORNEY
 GENERAL,  THE DEPARTMENT OF STATE, AND ALL COUNTY CLERKS WITHIN THE CITY
 OF NEW YORK WITHIN THIRTY  DAYS  OF  PUBLICATION  OF  SUCH  MOST  RECENT
 VERSION.
   6.  ANY MUNICIPALITY IN THE STATE SHALL BE AUTHORIZED TO ESTABLISH AND
 MAINTAIN A REGISTRY OF LANDLORDS OPERATING WITHIN  THE  JURISDICTION  OF
 SUCH  MUNICIPALITY  THAT  IS COMPARABLE TO THE WORST LANDLORD WATCHLIST,
 AND MAY ADOPT ENFORCEMENT PROCEDURES CONSISTENT WITH THIS SECTION.
   7. IF ANY CLAUSE, SENTENCE, PARAGRAPH, OR SUBDIVISION OF THIS  SECTION
 SHALL  BE ADJUDGED BY ANY COURT OF COMPETENT JURISDICTION TO BE INVALID,
 SUCH JUDGMENT SHALL NOT AFFECT,  IMPAIR,  OR  INVALIDATE  THE  REMAINDER
 THEREOF, BUT SHALL BE CONFINED IN ITS OPERATION TO THE CLAUSE, SENTENCE,
 PARAGRAPH,  OR  SUBDIVISION THEREOF DIRECTLY INVOLVED IN THE CONTROVERSY
 IN WHICH SUCH JUDGMENT SHALL HAVE BEEN RENDERED. IT IS  HEREBY  DECLARED
 TO  BE  THE  INTENT OF THE LEGISLATURE THAT THIS SECTION WOULD HAVE BEEN
 ENACTED EVEN IF SUCH INVALID PROVISIONS HAD NOT BEEN INCLUDED HEREIN.
   § 3. This act shall take effect July 1, 2026.  Effective  immediately,
 the  addition,  amendment and/or repeal of any rule or regulation neces-
 sary for the implementation of  this  act  on  its  effective  date  are
 authorized  to  be  made,  including  by  emergency, and completed on or
 before such effective date.