Assembly Bill A7386

2023-2024 Legislative Session

Prevents fraudulent deed transfers

download bill text pdf

Sponsored By

Current Bill Status - In Assembly 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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2023-A7386 (ACTIVE) - Details

See Senate Version of this Bill:
S2948
Current Committee:
Assembly Judiciary
Law Section:
Real Property Law
Laws Affected:
Amd §333, RP L; amd §§6-n & 14, Bank L
Versions Introduced in Other Legislative Sessions:
2019-2020: S7720
2021-2022: A6884, S1569

2023-A7386 (ACTIVE) - Summary

Relates to preventing fraudulent deed transfers; protects home owners from being misled into transferring their home to mortgage servicers.

2023-A7386 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7386
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 19, 2023
                                ___________
 
 Introduced by M. of A. LAVINE -- read once and referred to the Committee
   on Judiciary
 
 AN  ACT  to amend the real property law and the banking law, in relation
   to preventing fraudulent deed transfers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 333 of the real property law is amended by adding a
 new subdivision 4 to read as follows:
   4.  A  RECORDING  OFFICER  SHALL  NOT  RECORD OR ACCEPT FOR RECORD ANY
 CONVEYANCE OF REAL PROPERTY AFFECTING LAND IN NEW YORK STATE UNLESS SUCH
 CONVEYANCE CONTAINS,  OR  IS  ACCOMPANIED  BY  AN  ADDENDUM  CONTAINING,
 EXPLICIT  AND  BOLD LANGUAGE THAT READS, "YOU ARE HEREBY MADE AWARE THAT
 BY SIGNING THIS DEED YOU ARE TRANSFERRING  OWNERSHIP  OF  YOUR  LAND  OR
 HOME",  WITH  A SIGNATURE LINE UNDER SUCH LANGUAGE WHICH SHALL CONTAIN A
 NOTARIZED SIGNATURE OF THE TRANSFEROR.  FAILURE OF A  PERSON  OR  CORPO-
 RATION  TO USE A DEED WITHOUT SUCH WARNING LANGUAGE OR IF THE TRANSFEROR
 DOES NOT SIGN THE ACKNOWLEDGEMENT TO COMPLETE SUCH DEED TRANSFER  PURSU-
 ANT TO THIS SECTION SHALL BE A CLASS E FELONY.
   §  2. Section 6-n of the banking law is amended by adding a new subdi-
 vision 3 to read as follows:
   3. NO DEED TRANSFER FROM A BORROWER TO A  MORTGAGE  SERVICER  THAT  IS
 TRANSFERRED AS PART OF A MODIFICATION OF MORTGAGE TERMS SHALL BE CONSID-
 ERED  A  VALID DEED TRANSFER. THE DEPARTMENT SHALL HAVE THE AUTHORITY TO
 INVESTIGATE ANY DEED TRANSFER THAT IS IN VIOLATION OF THIS SUBDIVISION.
   § 3. Subdivision 1 of section 14 of the  banking  law  is  amended  by
 adding a new paragraph (t) to read as follows:
   (T)  TO PRESCRIBE THE METHODS AND STANDARDS UNDER WHICH THE DEPARTMENT
 SHALL RECEIVE AND  INVESTIGATE  CLAIMS  OF  FRAUDULENT  DEED  TRANSFERS,
 INCLUDING,  BUT  NOT  LIMITED TO DEED TRANSFERS THAT ARE IN VIOLATION OF
 SUBDIVISION THREE OF SECTION SIX-N OF THIS CHAPTER.
   § 4. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03255-01-3

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