NY State Senate Bill 2015-S7955A

Senate Bill S7955A

2015-2016 Legislative Session

Provides for a notice of conveyance of real property to be sent to the owners of record of residential real property

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 06, 2016	print number 7955a
Jun 06, 2016	amend and recommit to judiciary
May 31, 2016	referred to judiciary

Bill Amendments

Original

A (Active)

2015-S7955 - Details

See Assembly Version of this Bill:: A6685
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Amd §291, RP L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A3518
2011-2012: A4748
2013-2014: A4813
2017-2018: S2966, A1785
2019-2020: A440

2015-S7955 - Summary

Provides for a notice of conveyance of real property to be sent to the owners of record of residential real property; provides persons filing for conveyance shall bear the cost of mailing.

2015-S7955 - Sponsor Memo

                                 BILL NUMBER:  S7955

 TITLE OF BILL :

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

 PURPOSE :

To require the county clerk or city register to provide notice to the
owner of record when recording a conveyance of residential real
property.

 SUMMARY OF PROVISIONS :

Section 1 of this bill amends section 291 of the Real Property Law to
require the county clerk or city registrar, where applicable, to
provide written notice to the title owner of record of the conveyance
to a new owner. The person seeking to record such conveyance shall
submit with the filing of the document of conveyance, a pre-stamped
envelope with sufficient postage to mail a large envelope by first
class mail.

Section 2 of this bill provides the effective date.

 JUSTIFICATION :

According to the Federal Bureau of Investigations ("FBI"), real estate
and mortgage fraud is vastly on the rise. In 2007 the FBI received
46,717 Suspicious Activity Reports related to real estate and mortgage
fraud compared to 35,617 in 2006 and just 6,936 in 2003.  Only 7% of
these reports documented an exact dollar amount in terms of losses,
but even so, the total loss from this 7% was $813 million.  The FBI's
caseload has also escalated. By the end of fiscal year 2007, the FBI
experienced a 47% increase in real estate cases from 2006 and a
whopping 176% increase from 2003.

One of the more common means to defraud is through the fraudulent
transfer of land title to obtain home equity lines of credit.Criminals
also target residential vacant properties or houses put up for sale.
In fact, the FBI reports that at least twenty percent (20%) of all
title transfers are the result of some fraud. To facilitate these
schemes, perpetrators often pose as new owners of a home in order to
transfer the title. Once the title transfer is complete, the
perpetrator can use the new title to obtain a home equity line of
credit.

Among those affected by this egregious crime, the elderly are the most
vulnerable victims. Senior citizens, often owners of homes that are
fully paid for, without a mortgage, and therefore with no bank or
institution having a vested interest in their property, are especially
vulnerable to fraudulent transfers. Data from law enforcement and
industry sources were compared and mapped to determine which areas of
the country were most affected by mortgage fraud during 2007.
Information from the FBI, Mortgage Asset Research Institute ("MARI"),
Fannie Mae, RealtyTrac Inc., Interthinx, and Radian Guaranty Inc.
indicate that New York State was among the top 10 mortgage fraud
states for 2007.

 LEGISLATIVE HISTORY :

2013-2014 A.4813
2011-2012 A.4748
2009-2010 A.3518-A
2007-2008 A.11801

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
This act shall take effect the ninetieth day after it shall become
law.

2015-S7955 - Bill Text download pdf

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

                                  7955

                            I N  S E N A T E

                              May 31, 2016
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed 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] THIS ARTICLE, in good faith and for  a
valuable  consideration, from the same vendor or assignor, his distribu-
tees or devisees, and whose conveyance, contract or assignment is  first
duly  recorded, and is void as against the lien upon the same real prop-
erty 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 distributees or devisees, if such contract is made  in  good
faith  and  is  first duly recorded.  Notwithstanding the foregoing, any
increase in the principal balance of a mortgage lien by  virtue  of  the
addition  thereto of 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  CONVEYANCE OF RESIDENTIAL REAL PROPERTY IS RECORDED AND MAINTAINED

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

                                                           LBD03554-03-6

S. 7955                             2

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 AS SOON AS POSSIBLE."
THE  PARTY SEEKING TO RECORD SUCH CONVEYANCE SHALL BEAR THE COST OF SUCH
WRITTEN NOTICE.   THE PARTY  SEEKING  TO  RECORD  THE  CONVEYANCE  SHALL
SUBMIT, CONTEMPORANEOUSLY WITH THE FILING OF THE DOCUMENT OF CONVEYANCE,
A PRE-STAMPED ENVELOPE BEARING SUFFICIENT POSTAGE TO MAIL A LARGE ENVEL-
OPE  BY FIRST CLASS MAIL.  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.

2015-S7955A (ACTIVE) - Details

See Assembly Version of this Bill:: A6685
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Amd §291, RP L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A3518
2011-2012: A4748
2013-2014: A4813
2017-2018: S2966, A1785
2019-2020: A440

2015-S7955A (ACTIVE) - Summary

Provides for a notice of conveyance of real property to be sent to the owners of record of residential real property; provides persons filing for conveyance shall bear the cost of mailing.

2015-S7955A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7955A

 TITLE OF BILL :

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

 PURPOSE :

To require the county clerk or city register to provide notice to the
owner of record when recording a conveyance of residential real
property.

 SUMMARY OF PROVISIONS :

Section 1 of this bill amends section 291 of the Real Property Law to
require the county clerk or city registrar, where applicable, to
provide written notice to the title owner of record of the conveyance
to a new owner. The person seeking to record such conveyance shall
submit with the filing of the document of conveyance, a pre-stamped
envelope with sufficient postage to mail a large envelope by first
class mail.

Section 2 of this bill provides the effective date.

 JUSTIFICATION :

According to the Federal Bureau of Investigations ("FBI"), real estate
and mortgage fraud is vastly on the rise. In 2007 the FBI received
46,717 Suspicious Activity Reports related to real estate and mortgage
fraud compared to 35,617 in 2006 and just 6,936 in 2003.  Only 7% of
these reports documented an exact dollar amount in terms of losses,
but even so, the total loss from this 7% was $813 million.  The FBI's
caseload has also escalated. By the end of fiscal year 2007, the FBI
experienced a 47% increase in real estate cases from 2006 and a
whopping 176% increase from 2003.

One of the more common means to defraud is through the fraudulent
transfer of land title to obtain home equity lines of credit.Criminals
also target residential vacant properties or houses put up for sale.
In fact, the FBI reports that at least twenty percent (20%) of all
title transfers are the result of some fraud. To facilitate these
schemes, perpetrators often pose as new owners of a home in order to
transfer the title. Once the title transfer is complete, the
perpetrator can use the new title to obtain a home equity line of
credit.

Among those affected by this egregious crime, the elderly are the most
vulnerable victims. Senior citizens, often owners of homes that are
fully paid for, without a mortgage, and therefore with no bank or
institution having a vested interest in their property, are especially
vulnerable to fraudulent transfers. Data from law enforcement and
industry sources were compared and mapped to determine which areas of
the country were most affected by mortgage fraud during 2007.
Information from the FBI, Mortgage Asset Research Institute ("MARI"),
Fannie Mae, RealtyTrac Inc., Interthinx, and Radian Guaranty Inc.
indicate that New York State was among the top 10 mortgage fraud
states for 2007.

 LEGISLATIVE HISTORY :

2013-2014 A.4813
2011-2012 A.4748
2009-2010 A.3518-A
2007-2008 A.11801

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
This act shall take effect the ninetieth day after it shall become
law.

2015-S7955A (ACTIVE) - Bill Text download pdf

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

                                 7955--A

                            I N  S E N A T E

                              May 31, 2016
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Judiciary  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

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] THIS ARTICLE, in good faith and for a
valuable consideration, from the same vendor or assignor, his  distribu-
tees  or devisees, and whose conveyance, contract or assignment is first
duly recorded, and is void as against the lien upon the same real  prop-
erty  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  distributees or devisees, if such contract is made in good
faith and is first duly recorded.   Notwithstanding the  foregoing,  any
increase  in  the  principal balance of a mortgage lien by virtue of the
addition thereto of 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

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

                                                           LBD03554-06-6

S. 7955--A                          2

terms  of  repayment.    THE CLERK OF THE COUNTY OR CITY REGISTRAR WHERE
SUCH CONVEYANCE 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, YOU SHOULD OBTAIN LEGAL
COUNSEL. IF YOU BELIEVE YOU ARE A VICTIM OF  A  CRIME  RELATED  TO  THIS
RECORDING,  CONTACT YOUR LOCAL LAW ENFORCEMENT AGENCY OR, IF IN THE CITY
OF NEW YORK, THE OFFICE OF THE SHERIFF."
THE PARTY SEEKING TO RECORD SUCH CONVEYANCE SHALL BEAR THE COST OF  SUCH
WRITTEN  NOTICE.    THE  PARTY  SEEKING  TO  RECORD THE CONVEYANCE SHALL
SUBMIT, CONTEMPORANEOUSLY WITH THE FILING OF THE DOCUMENT OF CONVEYANCE,
A PRE-STAMPED ENVELOPE BEARING SUFFICIENT POSTAGE TO MAIL A LARGE ENVEL-
OPE BY FIRST CLASS MAIL.  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.

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