S T A T E O F N E W Y O R K
________________________________________________________________________
7708--A
2025-2026 Regular Sessions
I N A S S E M B L Y
April 8, 2025
___________
Introduced by M. of A. LAVINE -- read once and referred to the Committee
on Judiciary -- recommitted to the Committee on Judiciary in accord-
ance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the real property law and the banking law, in relation
to preventing fraudulent deed transfers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 333 of the real property law is amended by adding a
new subdivision 4 to read as follows:
4. (A) A RECORDING OFFICER SHALL NOT RECORD OR ACCEPT FOR RECORDING
ANY CONVEYANCE OF REAL PROPERTY AFFECTING LAND IN NEW YORK STATE UNLESS
SUCH CONVEYANCE CONTAINS, OR IS ACCOMPANIED BY AN ADDENDUM CONTAINING,
EXPLICIT AND BOLD LANGUAGE THAT READS, "YOU ARE HEREBY MADE AWARE THAT
BY SIGNING THIS DEED YOU ARE TRANSFERRING OWNERSHIP OF YOUR LAND OR
HOME", WITH A SIGNATURE LINE UNDER SUCH LANGUAGE WHICH SHALL CONTAIN A
NOTARIZED SIGNATURE OF THE TRANSFEROR. FAILURE OF A PERSON OR CORPO-
RATION TO USE A DEED WITHOUT SUCH WARNING LANGUAGE OR IF THE TRANSFEROR
DOES NOT SIGN THE ACKNOWLEDGEMENT TO COMPLETE SUCH DEED TRANSFER PURSU-
ANT TO THIS SECTION SHALL BE SUBJECT TO CIVIL PENALTIES AS FOLLOWS:
(I) TWO HUNDRED FIFTY DOLLARS FOR A FIRST VIOLATION;
(II) FIVE HUNDRED DOLLARS FOR A SECOND VIOLATION; OR
(III) ONE THOUSAND DOLLARS FOR A THIRD OR SUBSEQUENT VIOLATION.
(B) EACH DEED OR ADDENDUM THAT FAILS TO COMPLY WITH THIS SECTION SHALL
CONSTITUTE A SEPARATE VIOLATION. CIVIL PENALTIES MAY BE IMPOSED BY THE
SECRETARY OF STATE FOLLOWING NOTICE AND AN OPPORTUNITY TO BE HEARD, OR
MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE ATTORNEY GENERAL.
NOTHING IN THIS SECTION SHALL LIMIT EXISTING REMEDIES TO VOID OR SET
ASIDE FRAUDULENT CONVEYANCES UNDER ANY OTHER LAW.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07911-04-6
A. 7708--A 2
§ 2. Section 6-n of the banking law is amended by adding a new subdi-
vision 3 to read as follows:
3. NO DEED TRANSFER FROM A BORROWER TO A MORTGAGE SERVICER THAT IS
TRANSFERRED AS PART OF A MODIFICATION OF MORTGAGE TERMS SHALL BE CONSID-
ERED A VALID DEED TRANSFER. THE DEPARTMENT SHALL HAVE THE AUTHORITY TO
INVESTIGATE ANY DEED TRANSFER THAT IS IN VIOLATION OF THIS SUBDIVISION.
§ 3. Subdivision 1 of section 14 of the banking law is amended by
adding a new paragraph (t) to read as follows:
(T) TO PRESCRIBE THE METHODS AND STANDARDS UNDER WHICH THE DEPARTMENT
SHALL RECEIVE AND INVESTIGATE CLAIMS OF FRAUDULENT DEED TRANSFERS,
INCLUDING, BUT NOT LIMITED TO DEED TRANSFERS THAT ARE IN VIOLATION OF
SUBDIVISION THREE OF SECTION SIX-N OF THIS CHAPTER.
§ 4. This act shall take effect immediately.