Assembly Bill A9172

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9172
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             October 17, 2025
                                ___________
 
 Introduced by M. of A. ZINERMAN -- read once and referred to the Commit-
   tee on Judiciary
 
 AN ACT to amend the real property law and the executive law, in relation
   to establishing a statewide property recording alert system to prevent
   deed  theft and real estate fraud; and to amend the state finance law,
   in relation to establishing the county recording modernization fund
 
   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 "homeowner fraud protection and property alert act".
   § 2. Legislative findings and intent. The legislature finds that  deed
 theft  and  fraudulent  property  transfers  pose  a grave threat to the
 stability of New York families and communities. Predatory actors  target
 seniors,  immigrants, and homeowners of color, stripping them of genera-
 tional wealth and destabilizing neighborhoods.
   While New York  City's  Automated  City  Register  Information  System
 (ACRIS)  has provided a model for protecting homeowners through property
 alerts, most of New York's  62  counties  lack  such  protections.  This
 uneven  access  to fraud prevention tools leaves millions of New Yorkers
 vulnerable.
   The legislature therefore declares that it is the policy of the  state
 of  New  York to establish a uniform, statewide property recording alert
 system, ensuring  that  every  homeowner-from  Brooklyn  to  Buffalo-has
 access  to  timely  notice  when  legal instruments are recorded against
 their property.
   This act, the "homeowner fraud protection  and  property  alert  act",
 will:
   1.  Provide  real-time alerts to homeowners whenever a deed, mortgage,
 lien, or satisfaction is recorded.
   2. Modernize county recording offices across New York,  bringing  them
 into the 21st century with digital, accessible, and secure systems.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13722-01-5
              

 A. 9172                             2
 
   3.  Establish  New  York  as  a  national  leader in technology-driven
 consumer protection and homeowner justice.
   § 3. The real property law is amended by adding a new section 316-c to
 read as follows:
   §  316-C.  STATEWIDE  PROPERTY  RECORDING ALERT SYSTEM. 1. CREATION OF
 SYSTEM. THE DEPARTMENT OF STATE, IN  CONSULTATION  WITH  THE  OFFICE  OF
 INFORMATION  TECHNOLOGY  SERVICES  AND  COUNTY RECORDING OFFICERS, SHALL
 ESTABLISH AND MAINTAIN A STATEWIDE ELECTRONIC PROPERTY  RECORDING  ALERT
 SYSTEM.
   2. SYSTEM FUNCTIONALITY. (A) THE SYSTEM SHALL ALLOW PROPERTY OWNERS TO
 REGISTER  THEIR  PROPERTY AND RECEIVE REAL-TIME NOTIFICATION WHENEVER AN
 INSTRUMENT AFFECTING THEIR PROPERTY, INCLUDING DEEDS, MORTGAGES,  LIENS,
 OR SATISFACTIONS, IS RECORDED IN THE OFFICIAL RECORDS OF ANY COUNTY.
   (B) NOTIFICATIONS SHALL BE DELIVERED BY ELECTRONIC MAIL, TEXT MESSAGE,
 AUTOMATED  TELEPHONE  CALL,  OR POSTAL MAIL, AS DESIGNATED BY THE REGIS-
 TRANT.
   (C) NOTIFICATIONS SHALL BE AVAILABLE IN THE TEN MOST COMMON  NON-ENGL-
 ISH LANGUAGES IN THE STATE.
   (D)  THE  SYSTEM  SHALL  COMPLY WITH ACCESSIBILITY STANDARDS UNDER THE
 AMERICANS WITH DISABILITIES ACT.
   3. COUNTY PARTICIPATION. (A)  EVERY  COUNTY  RECORDING  OFFICER  SHALL
 INTEGRATE  ITS RECORDING SYSTEM WITH THE STATEWIDE ALERT SYSTEM PURSUANT
 TO STANDARDS ESTABLISHED BY THE DEPARTMENT OF STATE.
   (B) COUNTIES MAY APPLY FOR  GRANTS  UNDER  SUBDIVISION  FIVE  OF  THIS
 SECTION TO SUPPORT INTEGRATION AND MODERNIZATION.
   4.  ENROLLMENT.  (A) PROPERTY OWNERS MAY ENROLL FREE OF CHARGE THROUGH
 AN ONLINE PORTAL, BY TELEPHONE, BY MAIL, OR IN PERSON AT THE  OFFICE  OF
 THE COUNTY RECORDING OFFICER.
   (B) UPON THE CONVEYANCE OR REFINANCING OF PROPERTY, CLOSING AGENTS AND
 TITLE COMPANIES SHALL PROVIDE ENROLLMENT FORMS TO ALL PROPERTY OWNERS.
   5.  GRANTS  FOR  COUNTY  MODERNIZATION.  THE DEPARTMENT OF STATE SHALL
 PROVIDE GRANTS FROM THE COUNTY RECORDING MODERNIZATION FUND  ESTABLISHED
 PURSUANT TO SECTION NINETY-SIX-A OF THE STATE FINANCE LAW FOR:
   (A) TECHNOLOGY UPGRADES TO DIGITIZE PAPER-BASED RECORDS;
   (B) CYBERSECURITY IMPROVEMENTS; AND
   (C) INTEGRATION WITH THE STATEWIDE ALERT SYSTEM.
   6.  FUNDING.  (A)  THE SYSTEM SHALL BE FUNDED THROUGH ANNUAL APPROPRI-
 ATIONS OF THE LEGISLATURE.
   (B) THE DEPARTMENT OF  STATE  IS  AUTHORIZED  TO  IMPOSE  A  RECORDING
 SURCHARGE  NOT  TO  EXCEED  FIVE DOLLARS PER INSTRUMENT, THE PROCEEDS OF
 WHICH SHALL BE DEPOSITED INTO THE COUNTY  RECORDING  MODERNIZATION  FUND
 ESTABLISHED PURSUANT TO SECTION NINETY-SIX-A OF THE STATE FINANCE LAW.
   (C)  CIVIL  PENALTIES  AND  SETTLEMENTS COLLECTED IN DEED THEFT PROSE-
 CUTIONS MAY BE DIRECTED  TO  THE  COUNTY  RECORDING  MODERNIZATION  FUND
 ESTABLISHED PURSUANT TO SECTION NINETY-SIX-A OF THE STATE FINANCE LAW.
   7. REPORTING. THE DEPARTMENT OF STATE SHALL SUBMIT AN ANNUAL REPORT TO
 THE GOVERNOR AND THE LEGISLATURE DETAILING:
   (A) THE NUMBER OF PROPERTIES ENROLLED;
   (B) THE NUMBER OF ALERTS ISSUED;
   (C) REFERRALS TO LAW ENFORCEMENT;
   (D) CASES OF FRAUD PREVENTED; AND
   (E) COUNTY MODERNIZATION PROGRESS.
   § 4. The executive law is amended by adding a new section 94-e to read
 as follows:
   §  94-E.  COORDINATION  WITH  THE  OFFICE OF THE ATTORNEY GENERAL. THE
 DEPARTMENT OF STATE SHALL COORDINATE WITH THE  OFFICE  OF  THE  ATTORNEY
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 GENERAL AND LOCAL DISTRICT ATTORNEYS TO ESTABLISH PROTOCOLS FOR REFERRAL
 OF  SUSPICIOUS FILINGS DETECTED THROUGH THE STATEWIDE PROPERTY RECORDING
 ALERT SYSTEM.
   §  5. The state finance law is amended by adding a new section 96-a to
 read as follows:
   § 96-A. COUNTY RECORDING MODERNIZATION FUND. 1. THERE IS HEREBY ESTAB-
 LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER,  THE  COMMISSIONER
 OF  TAXATION AND FINANCE, AND THE DEPARTMENT OF STATE A FUND TO BE KNOWN
 AS THE COUNTY RECORDING MODERNIZATION FUND.
   2. SUCH FUND SHALL CONSIST OF ALL MONEYS RECEIVED BY THE DEPARTMENT OF
 STATE FROM THE RECORDING SURCHARGE AUTHORIZED BY SECTION  THREE  HUNDRED
 SIXTEEN-C  OF  THE REAL PROPERTY LAW, AND OF CIVIL PENALTIES AND SETTLE-
 MENTS COLLECTED IN DEED THEFT PROSECUTIONS AS PROVIDED IN SECTION  THREE
 HUNDRED SIXTEEN-C OF THE REAL PROPERTY LAW.
   3.  MONEYS  OF THE FUND SHALL BE USED TO FUND GRANTS PROVIDED PURSUANT
 TO SECTION THREE HUNDRED SIXTEEN-C OF THE REAL PROPERTY LAW FOR TECHNOL-
 OGY UPGRADES TO DIGITIZE  PAPER-BASED  RECORDS,  CYBERSECURITY  IMPROVE-
 MENTS, AND INTEGRATION WITH THE STATEWIDE ALERT SYSTEM.
   § 6. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act 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,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 7. This act shall take effect eighteen months after  it  shall  have
 become  a  law;  provided,  however,  that  the  department of state may
 promulgate rules and regulations necessary  for  the  implementation  of
 this act immediately.