Bill Text: NY S04663 | 2017-2018 | General Assembly | Introduced

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Bill Title: Establishes a rebuttable presumption to the right to title of an incumbrancer in certain cases.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO JUDICIARY [S04663 Detail]

Download: New_York-2017-S04663-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4663
                               2017-2018 Regular Sessions
                    IN SENATE
                                    February 23, 2017
                                       ___________
        Introduced  by  Sen.  AVELLA -- 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  rebuttal  of  the
          right of an incumbrancer
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 266 of the real property law is amended to read  as
     2  follows:
     3    §  266. Rights of purchaser or incumbrancer for valuable consideration
     4  protected.  This article does not in any manner  affect  or  impair  the
     5  title  of  a  purchaser  or  incumbrancer  for a valuable consideration,
     6  unless it appears that he had previous notice of the  fraudulent  intent
     7  of  his  immediate  grantor, or of the fraud rendering void the title of
     8  such grantor.  There shall be a rebuttable presumption that this section
     9  shall not apply in the case of a transfer of  mortgaged  real  property,
    10  between  a  purchaser and seller who are not associated parties, that is
    11  not accompanied by the recording with the clerk of the  county  or  with
    12  the  commissioner of deeds in which the property is located, of a state-
    13  ment,  executed  by  the  mortgagee,  and  duly  acknowledged,  stating,
    14  substantially,  that  (1)  a party is assuming the seller's indebtedness
    15  secured by the mortgage; or (2) that the  indebtedness  secured  by  the
    16  mortgage has been satisfied.
    17    For  the purposes of this section, "associated parties" means spouses,
    18  ex-spouses, parents and children, siblings, a homeowner and  that  home-
    19  owner's  family  trust, or a homeowner and that homeowner's wholly-owned
    20  limited liability company.
    21    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04039-01-7