S T A T E   O F   N E W   Y O R K
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                                  4813

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            February 11, 2013
                               ___________

Introduced  by M. of A. PERRY -- Multi-Sponsored by -- M. of A. BENEDET-
  TO, BOYLAND, BROOK-KRASNY,  CLARK,  COLTON,  GALEF,  HIKIND,  KELLNER,
  V. LOPEZ,  MAISEL,  MILLMAN,  ROSENTHAL,  SWEENEY,  TITUS, WEISENBERG,
  WRIGHT -- read once and referred to the Committee on Judiciary

AN ACT to amend the real property law, in relation to notice of sale  or
  transfer of ownership of residential property

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 291 of the real property law, as amended by chapter
447 of the laws of 1984, is amended to read as follows:
  S 291. Recording of conveyances.  A conveyance of real property, with-
in the state, on being duly acknowledged by  the  person  executing  the
same,  or proved as required by this chapter, and such acknowledgment or
proof duly certified when required by this chapter, may be  recorded  in
the  office of the clerk of the county where such real property is situ-
ated, and such county clerk OR CITY REGISTRAR  WHERE  APPLICABLE  shall,
upon  the  request  of any party, on tender of the lawful fees therefor,
record the same in [his] said office.   [Every such  conveyance  not  so
recorded  is  void  as  against any person who subsequently purchases or
acquires by exchange or contracts to purchase or  acquire  by  exchange,
the same real property or any portion thereof, or acquires by assignment
the  rent to accrue therefrom as provided in section two hundred ninety-
four-a of the real property law,  in  good  faith  and  for  a  valuable
consideration,  from  the  same  vendor or assignor, his distributees or
devisees, and whose conveyance, contract or  assignment  is  first  duly
recorded, and is void as against the lien upon the same real property or
any  portion thereof arising from payments made upon the execution of or
pursuant to the terms of a contract with the same vendor, his  distribu-
tees  or  devisees,  if such contract is made in good faith and is first
duly recorded.  Notwithstanding the foregoing, any increase in the prin-
cipal balance of a mortgage lien by virtue of the  addition  thereto  of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00089-01-3
              

A. 4813                             2

unpaid  interest  in  accordance  with  the  terms of the mortgage shall
retain the priority of  the  original  mortgage  lien  as  so  increased
provided  that  any  such  mortgage  instrument  sets forth its terms of
repayment.] THE CLERK OF THE COUNTY OR CITY REGISTRAR WHERE SUCH CONVEY-
ANCE  OF RESIDENTIAL REAL PROPERTY IS RECORDED AND MAINTAINED SHALL MAIL
A WRITTEN NOTICE OF SUCH CONVEYANCE TO THE OWNER OF RECORD.  THE  NOTICE
SHALL  HAVE  THE  HEADING  PRINTED  IN  20  POINT  BOLD TYPE AND READ AS
FOLLOWS:
"NOTICE OF SALE OR TRANSFER OF OWNERSHIP OF YOUR RESIDENTIAL PROPERTY.
TO:______________________________
      NAME OF OWNER OF RECORD

OUR RECORDS SHOW THAT YOU ARE LISTED AS THE CURRENT OWNER OF RECORD  FOR
RESIDENTIAL PROPERTY:

BLOCK # __________  LOT # ________

LOCATED AT: ___________________________
                  STREET ADDRESS

IN THE COUNTY OF __________________ NEW YORK
ON ____________, DOCUMENTS WERE FILED AT THIS
      DATE
OFFICE TO CHANGE OWNERSHIP AND TRANSFER TITLE OF YOUR PROPERTY.

TO: ______________________________
          NAME OF NEW OWNER

IF  YOU  HAVE ANY QUESTIONS REGARDING THE VALIDITY OF THE DOCUMENTS, AND
WISH TO DISPUTE THE RECORDING OF THE TRANSFER, PLEASE CONTACT THE COUNTY
CLERK'S OR CITY REGISTRAR'S OFFICE BY ________________________."
                               DATE
THE PARTY SEEKING TO RECORD SUCH CONVEYANCE SHALL BEAR THE COST OF  SUCH
WRITTEN  NOTICE.    SUCH  COST  SHALL BE PRESCRIBED BY THE MUNICIPALITY.
FAILURE TO MAIL SUCH NOTICE OR THE FAILURE OF ANY PARTY TO  RECEIVE  THE
SAME, SHALL NOT AFFECT THE VALIDITY OF THE CONVEYANCE OF THE PROPERTY.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.