Bill Text: NY S01224 | 2023-2024 | General Assembly | Introduced

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Bill Title: Excludes real property conveyances from the written notice requirement when such property is being conveyed by the state of New York or any of its political subdivisions as part of a foreclosure proceeding.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced) 2024-01-03 - REFERRED TO JUDICIARY [S01224 Detail]

Download: New_York-2023-S01224-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1224

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 10, 2023
                                       ___________

        Introduced  by Sens. BORRELLO, OBERACKER, ORTT -- read twice and ordered
          printed, and when printed to be committed to the Committee on  Judici-
          ary

        AN  ACT to amend the real property law, in relation to excluding certain
          real property conveyances from the written notice requirement

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. Section 291 of the real property law, as amended by chapter
     2  641 of the laws of 2019, is amended to read as follows:
     3    § 291. Recording of conveyances. A conveyance of real property, within
     4  the  state, on being duly acknowledged by the person executing the same,
     5  or proved as required by this chapter, and such acknowledgment or  proof
     6  duly  certified  when  required  by this chapter, may be recorded in the
     7  office of the clerk of the county where such real property is  situated,
     8  and such county clerk or city registrar where applicable shall, upon the
     9  request  of any party, on tender of the lawful fees therefor, record the
    10  same in said office. Every such conveyance not so recorded  is  void  as
    11  against any person who subsequently purchases or acquires by exchange or
    12  contracts  to purchase or acquire by exchange, the same real property or
    13  any portion thereof, or acquires by assignment the rent to accrue there-
    14  from as provided in section two hundred ninety-four-a of  this  article,
    15  in  good faith and for a valuable consideration, from the same vendor or
    16  assignor, his distributees or devisees, and whose  conveyance,  contract
    17  or  assignment  is  first duly recorded, and is void as against the lien
    18  upon the same real property or any portion thereof arising from payments
    19  made upon the execution of or pursuant to the terms of a  contract  with
    20  the  same vendor, his distributees or devisees, if such contract is made
    21  in good faith and is first duly recorded.   Notwithstanding the  forego-
    22  ing,  any increase in the principal balance of a mortgage lien by virtue
    23  of the addition thereto of unpaid interest in accordance with the  terms
    24  of  the mortgage shall retain the priority of the original mortgage lien

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03975-01-3
        S. 1224                             2

     1  as so increased provided that any such mortgage  instrument  sets  forth
     2  its  terms of repayment. The clerk of the county or city registrar where
     3  such conveyance of residential real property is recorded and  maintained
     4  shall  mail  a written notice of such conveyance to the owner of record.
     5  The notice shall have the heading printed in 20 point bold type and read
     6  as follows:
     7  "NOTICE OF SALE OR TRANSFER OF OWNERSHIP OF YOUR RESIDENTIAL PROPERTY.
     8  To:______________________________
     9        Name of owner of record

    10  Our records show that you are listed as the current owner of record  for
    11  residential property:

    12  Block #__________  Lot #________

    13  Located At: ___________________________
    14                    street address

    15  in the county of __________________ New York
    16  On ____________, documents were filed at this
    17        date
    18  office to change ownership and transfer title of your property.

    19  To: ______________________________
    20            name of new owner

    21  If  you  have any questions regarding the validity of the documents, and
    22  wish to dispute the recording of the transfer, you should  obtain  legal
    23  counsel.  If  you  believe  you  are a victim of a crime related to this
    24  recording, contact your local law enforcement agency or, if in the  City
    25  of New York, the office of the sheriff."
    26  The  party seeking to record such conveyance shall bear the cost of such
    27  written notice. The clerk of the county or city registrar is entitled to
    28  charge a reasonable fee to cover the cost of mailing the envelope to the
    29  owner of record. Failure to mail such notice or the failure of any party
    30  to receive the same, shall not affect the validity of the conveyance  of
    31  the  property.  Conveyances by the state of New York or any of its poli-
    32  tical subdivisions in conjunction with  a  foreclosure  of  a  tax  lien
    33  pursuant  to  a proceeding in rem under title three of article eleven of
    34  the real property tax law shall not require written notice.
    35    § 2. This act shall take effect immediately.