S T A T E O F N E W Y O R K
________________________________________________________________________
8863--A
2025-2026 Regular Sessions
I N A S S E M B L Y
June 9, 2025
___________
Introduced by M. of A. CUNNINGHAM, LEVENBERG, HYNDMAN, FORREST, GALLAGH-
ER, SHRESTHA, MORENO, MITAYNES -- read once and referred to the
Committee on Judiciary -- recommitted to the Committee on Judiciary in
accordance 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 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) "LENDER" 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 THAT
ENCUMBERS COVERED PROPERTY OR WAS COLLATERALIZED BY COVERED PROPERTY.
(B) "COVERED PROPERTY" MEANS RESIDENTIAL REAL PROPERTY, INCLUDING BUT
NOT LIMITED TO, ONE-TO-SIX FAMILY DWELLINGS, CONDOMINIUM UNITS, COOPER-
ATIVE APARTMENTS, LOTS IN MANUFACTURED HOME PARKS, AND SECURITIES THAT
ENTITLE THE HOLDER THEREOF TO POSSESSION OR OCCUPANCY OF SUCH PROPERTY.
(C) "DEED THEFT" MEANS THE ACT OF TAKING, TRANSFERRING OR ENCUMBERING
TITLE TO COVERED PROPERTY WITHOUT THE OWNER'S APPROVAL OR KNOWLEDGE, OR
THROUGH UNFAIR, DECEPTIVE OR ABUSIVE ACTS OR PRACTICES. DEED THEFT
INCLUDES, BUT IS NOT LIMITED TO ACTIONS TAKEN BY A NATURAL PERSON OR
ENTITY WHEREBY SUCH PERSON OR ENTITY:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10740-05-6
A. 8863--A 2
(I) ALTERS, FALSIFIES, FORGES, OR MISREPRESENTS ANY WRITTEN INSTRUMENT
INVOLVED IN THE CONVEYANCE OR FINANCING OF COVERED PROPERTY, SUCH AS A
RESIDENTIAL OR COMMERCIAL DEED OR TITLE, WITH THE EFFECT OF DECEIVING,
DEFRAUDING, OR UNLAWFULLY TRANSFERRING OR ENCUMBERING THE OWNERSHIP
RIGHTS OR A PORTION THEREOF OF COVERED PROPERTY;
(II) MISREPRESENTS THEMSELVES AS THE OWNER OR AUTHORIZED REPRESEN-
TATIVE OF COVERED PROPERTY TO INDUCE OTHERS TO RELY ON SUCH FALSE INFOR-
MATION IN ORDER TO OBTAIN FINANCING;
(III) TAKES, OBTAINS, OR TRANSFERS TITLE OR OWNERSHIP OF COVERED PROP-
ERTY BY FRAUD, MISREPRESENTATION, FORGERY, LARCENY, 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
COVERED PROPERTY.
(D) "DEED THIEF" MEANS ANY PERSON OR ENTITY THAT COMMITS DEED THEFT.
(E) "HIGH-VALUE EXPERIENCED COMMERCIAL TRANSACTION" MEANS A TRANS-
ACTION THE VALUE OF WHICH EXCEEDS SIX MILLION DOLLARS WHERE ALL PARTIES
TO THE TRANSACTION ARE LICENSED REALTORS, LAWYERS, AND/OR HAVE PURCHAS-
ING, SELLING, RENTING, AND/OR ENCUMBERING REAL PROPERTY AS THEIR PRIMARY
SOURCE OF INCOME.
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 COVERED PROPERTY
OF SUCH PERSON OR ENTITY.
(B) A PERSON OR ENTITY THAT IS A VICTIM OF DEED THEFT, AS DEFINED IN
THIS SECTION, MAY MAINTAIN AN ACTION AGAINST A LENDER THAT IS NOT A BONA
FIDE ENCUMBRANCER IF SUCH LENDER:
(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 COVERED 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 LENDER 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 COVERED PROP-
ERTY THAT IS SUBJECT TO THE CLAIM OF DEED THEFT.
3. HIGH-VALUE EXPERIENCED COMMERCIAL TRANSACTIONS. NO PRIVATE CAUSE OF
ACTION FOR DEED THEFT SHALL BE AVAILABLE FOR HIGH-VALUE EXPERIENCED
COMMERCIAL TRANSACTIONS.
4. REMEDIES AND LIMITATIONS. (A) ANY DEED OR MORTGAGE OBTAINED BY DEED
THEFT SHALL BE DEEMED VOID AB INITIO.
(B) ANY PERSON OR ENTITY FOUND BY A PREPONDERANCE OF THE EVIDENCE TO
HAVE VIOLATED THIS SECTION SHALL BE LIABLE TO THE DEED THEFT VICTIM FOR
THE FOLLOWING: (I) ACTUAL DAMAGES, INCLUDING CONSEQUENTIAL AND INCI-
DENTAL DAMAGES, (II) TREBLE DAMAGES, AND (III) REASONABLE ATTORNEYS'
FEES.
(C) WITH RESPECT TO A BONA FIDE PURCHASER OR ENCUMBRANCER FOR VALUE,
ANY RIGHT TO EQUITABLE SUBROGATION SHALL BE LIMITED TO AN AMOUNT NOT TO
EXCEED THE AMOUNT THAT SUCH BONA FIDE PURCHASER OR ENCUMBRANCER FOR
A. 8863--A 3
VALUE PAID TO SATISFY ANY LIENS ENCUMBERING THE COVERED PROPERTY BEFORE
THE DEED THEFT. THIS LIEN SHALL NOT ACCRUE INTEREST, SHALL NOT PROVIDE
FOR A RIGHT TO FORECLOSE ON THE COVERED PROPERTY, AND SHALL BECOME DUE
UPON THE SALE OF THE SUBJECT COVERED PROPERTY.
(D) THE REMEDIES PROVIDED IN THIS SECTION ARE NOT INTENDED TO BE THE
EXCLUSIVE REMEDIES AVAILABLE TO A VICTIM OF DEED THEFT, AND A DEED THEFT
VICTIM MAY BE GRANTED INJUNCTIVE, DECLARATORY AND SUCH OTHER EQUITABLE
RELIEF AS THE COURT DEEMS APPROPRIATE IN AN ACTION TO ENFORCE COMPLIANCE
WITH THIS SECTION.
(E) A PRIVATE ACTION FOR DAMAGES AGAINST THE LENDER OR DEED THIEF
PURSUANT TO THIS SECTION SHALL BE COMMENCED WITHIN SIX YEARS OF DISCOV-
ERY OF THE DEED THEFT.
(F) IN ANY ACTION BY AN ASSIGNEE TO ENFORCE A LOAN AGAINST A DEED
THEFT VICTIM, A DEED THEFT VICTIM MAY ASSERT ANY CLAIMS IN RECOUPMENT
AND DEFENSES TO PAYMENT UNDER THE PROVISIONS OF THIS SECTION AND WITH
RESPECT TO THE LOAN, WITHOUT TIME LIMITATIONS, THAT THE DEED THEFT
VICTIM COULD ASSERT AGAINST THE ORIGINAL LENDER.
§ 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.