S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8863
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 9, 2025
                                ___________
 
 Introduced  by  M.  of  A.  CUNNINGHAM  -- read once and referred to the
   Committee on Judiciary
 
 AN ACT to amend the  real  property  actions  and  proceedings  law,  in
   relation to establishing a right of action for deed theft
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Short title. This act shall be known and may  be  cited  as
 the "deed theft: private right of action act".
   §  2.  The  real  property  actions  and proceedings law is amended by
 adding a new section 891 to read as follows:
   § 891. ACTION FOR DEED THEFT. 1. DEFINITIONS. FOR THE PURPOSES OF THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "BANK" MEANS ANY TRUST COMPANY, PRIVATE BANKER, SAVINGS BANK, SAFE
 DEPOSIT COMPANY, LICENSED LENDER, SAVINGS AND LOAN  ASSOCIATION,  CREDIT
 UNION,  INVESTMENT  COMPANY,  OR MUTUAL TRUST COMPANY, AS SUCH TERMS ARE
 DEFINED IN SECTION TWO OF THE BANKING LAW, THAT PROVIDES A  LOAN  FOR  A
 REAL PROPERTY.
   (B)  "DEED THEFT" MEANS THE ACT OF TAKING, TRANSFERRING OR ENCUMBERING
 TITLE TO RESIDENTIAL OR COMMERCIAL REAL  PROPERTY  WITHOUT  THE  OWNER'S
 APPROVAL  OR  KNOWLEDGE,  OR THROUGH FRAUDULENT OR DECEITFUL MEANS. DEED
 THEFT INCLUDES, BUT IS NOT LIMITED TO ACTIONS TAKEN BY A NATURAL  PERSON
 OR ENTITY WHEREBY SUCH PERSON OR ENTITY:
   (I) ALTERS, FALSIFIES, FORGES, OR MISREPRESENTS ANY WRITTEN INSTRUMENT
 INVOLVED  IN  THE  CONVEYANCE  OR  FINANCING OF REAL PROPERTY, SUCH AS A
 RESIDENTIAL OR COMMERCIAL DEED OR TITLE, WITH  THE  INTENT  TO  DECEIVE,
 DEFRAUD,  OR  UNLAWFULLY  TRANSFER OR ENCUMBER THE OWNERSHIP RIGHTS OR A
 PORTION THEREOF OF RESIDENTIAL OR COMMERCIAL PROPERTY;
   (II) MISREPRESENTS THEMSELVES AS THE  OWNER  OR  AUTHORIZED  REPRESEN-
 TATIVE  OF  RESIDENTIAL  OR COMMERCIAL REAL PROPERTY TO INDUCE OTHERS TO
 RELY  ON  SUCH  FALSE  INFORMATION  IN  ORDER  TO  OBTAIN  OWNERSHIP  OR
 POSSESSION OF SUCH REAL PROPERTY;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10740-01-5
              

 A. 8863                             2
 
   (III)  TAKES,  OBTAINS, OR TRANSFERS TITLE OR OWNERSHIP OF RESIDENTIAL
 OR COMMERCIAL REAL PROPERTY BY FRAUD, MISREPRESENTATION, FORGERY, LARCE-
 NY, FALSE PRETENSES, FALSE PROMISE, OR ANY OTHER FRAUDULENT OR DECEPTIVE
 PRACTICE; OR
   (IV)  FAILS  TO  DISCLOSE  MATERIALLY RELEVANT INFORMATION IN ORDER TO
 INDUCE AN UNFAIR TRANSFER OR ENCUMBRANCE  OF  THE  OWNERSHIP  RIGHTS  OF
 RESIDENTIAL OR COMMERCIAL REAL PROPERTY.
   (C)  "DEED  THIEF"  MEANS A NATURAL PERSON OR ENTITY THAT COMMITS DEED
 THEFT.
   2. PRIVATE RIGHT OF ACTION FOR VICTIMS OF DEED THEFT. (A) A PERSON  OR
 ENTITY  THAT  IS A VICTIM OF DEED THEFT, AS DEFINED IN THIS SECTION, MAY
 MAINTAIN A PRIVATE RIGHT OF ACTION AGAINST ANY DEED THIEF, AS DEFINED IN
 THIS SECTION, WHO HAS COMMITTED DEED THEFT AGAINST THE REAL PROPERTY  OF
 SUCH PERSON OR ENTITY. IN EVALUATING WHETHER A DEED THIEF HAS ACTED WITH
 THE  INTENT TO DECEIVE OR ENGAGE IN A SUBSTANTIALLY UNFAIR PRACTICE, THE
 FINDER OF FACT SHALL CONSIDER THE RELATIVE  SOPHISTICATION  AND  VULNER-
 ABILITY OF THE PARTIES TO THE TRANSACTION.
   (B)  A  PERSON OR ENTITY THAT IS A VICTIM OF DEED THEFT, AS DEFINED IN
 THIS SECTION, MAY MAINTAIN AN ACTION AGAINST A BANK THAT HAS NEGLIGENTLY
 FACILITATED DEED THEFT IF SUCH BANK:
   (I) PROVIDES A LOAN TO A DEED THIEF AND SUCH LOAN  MATERIALLY  ASSISTS
 THE DEED THIEF IN THE COMMISSION OF THE DEED THEFT; AND
   (II)  FAILS TO CONDUCT REASONABLE DUE DILIGENCE OR COMPLETE A STANDARD
 NON-NEGLIGENT INVESTIGATION REGARDING THE REAL PROPERTY THAT IS  SUBJECT
 TO THE CLAIM OF DEED THEFT.
   (C)  A  PERSON OR ENTITY THAT IS A VICTIM OF DEED THEFT, AS DEFINED IN
 THIS SECTION, MAY MAINTAIN AN ACTION AGAINST A  TITLE  INSURANCE  CORPO-
 RATION  THAT  HAS  NEGLIGENTLY FACILITATED SUCH DEED THEFT IF SUCH TITLE
 INSURANCE CORPORATION:
   (I) PROVIDES TITLE INSURANCE COVERAGE TO A BANK THAT PROVIDES  A  LOAN
 TO A DEED THIEF AND SUCH TITLE INSURANCE COVERAGE ASSISTS IN THE COMMIS-
 SION OF THE DEED THEFT; AND
   (II)  FAILS TO CONDUCT REASONABLE DUE DILIGENCE OR COMPLETE A STANDARD
 NON-NEGLIGENT INVESTIGATION OF THE TITLE OWNERSHIP OF THE REAL  PROPERTY
 THAT IS SUBJECT TO THE CLAIM OF DEED THEFT.
   3.  DAMAGES AND ATTORNEY FEES. (A) A PERSON OR ENTITY THAT IS A VICTIM
 OF DEED THEFT SHALL BE ENTITLED TO RECOVER TREBLE DAMAGES AND ATTORNEYS'
 FEES FROM A PERSON OR ENTITY THAT HAS COMMITTED DEED THEFT  PURSUANT  TO
 PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION.
   (B)  A  PERSON OR ENTITY THAT IS A VICTIM OF DEED THEFT SHALL BE ENTI-
 TLED TO RECOVER:
   (I) TREBLE DAMAGES AND ATTORNEYS' FEES FROM A BANK OR TITLE  INSURANCE
 CORPORATION  THAT  HAS COMMITTED DEED THEFT PURSUANT TO PARAGRAPH (B) OR
 (C) OF SUBDIVISION TWO OF THIS SECTION WHEN IT IS PROVEN BY A PREPONDER-
 ANCE OF THE EVIDENCE THAT SUCH BANK OR TITLE INSURANCE CORPORATION KNOW-
 INGLY OR RECKLESSLY FACILITATED SUCH DEED THEFT; OR
   (II) DAMAGES AND ATTORNEYS' FEES FROM A BANK OR TITLE INSURANCE CORPO-
 RATION THAT HAS COMMITTED DEED THEFT PURSUANT TO PARAGRAPH (B) OR (C) OF
 SUBDIVISION TWO OF THIS SECTION.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law. Effective immediately, 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.