Bill Text: NY A10425 | 2015-2016 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Requires notaries public and commissioners of deeds to complete and retain certain documents relating to the transfer of residential real property.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced - Dead) 2016-06-14 - ordered to third reading rules cal.317 [A10425 Detail]

Download: New_York-2015-A10425-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          10425
                   IN ASSEMBLY
                                      May 26, 2016
                                       ___________
        Introduced  by  M.  of  A.  WALKER, WEINSTEIN, ROBINSON, LENTOL, MOSLEY,
          COOK, HYNDMAN, TITUS -- Multi-Sponsored by -- M. of A.  BARRON,  NOLAN
          -- read once and referred to the Committee on Judiciary
        AN  ACT  to amend the executive law, in relation to the requirements for
          notaries public and commissioners of deeds relating to certain instru-
          ments affecting real property
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. The executive law is amended by adding a new section 135-c
     2  to read as follows:
     3    § 135-c. Requirements of notaries public and  commissioners  of  deeds
     4  related to certain instruments affecting real property.  1. This section
     5  shall  apply  to every notarial act in the state involving a document of
     6  conveyance that transfers or purports to transfer title with respect  to
     7  residential  real  property located in the state. It shall also apply to
     8  commissioners of deeds appointed pursuant to section one  hundred  forty
     9  of this article.
    10    2. As used in this section, the following terms shall have the follow-
    11  ing meanings:
    12    a.  "document  of  conveyance"  shall  mean  a written instrument that
    13  transfers or purports to transfer title effecting a change in  ownership
    14  to residential real property, excluding:
    15    (i)  court  ordered  and court-authorized transfer of residential real
    16  property including but not limited to  a  transfer  between  spouses  or
    17  former  spouses  as  a  result  of  a  decree of divorce, dissolution of
    18  marriage, annulment, or legal separation, or as  a  result  of  property
    19  settlement,  or agreement incidental to a decree of divorce, dissolution
    20  of marriage, annulment, or legal separation;
    21    (ii) a transfer order by a probate court during the administration  of
    22  a decedent's estate;
    23    (iii)  a  judgment of a foreclosure and sale, or a levy pursuant to an
    24  execution;
    25    (iv) a court ordered voiding of an instrument affecting real property;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15643-01-6
        A. 10425                            2
     1    (v) a transfer of property to a trust in which the beneficiary  is  or
     2  includes the grantor; and
     3    (vi)  a  deed from a grantor to himself or herself that is intended to
     4  change the nature or type of tenancy by which he or she owns residential
     5  real property.
     6    b. "financial institution" shall mean a bank, trust  company,  savings
     7  institution,  or  credit  union, chartered and supervised under state or
     8  federal law.
     9    c. "notarial record"  shall  mean  the  written  document  created  in
    10  conformity with the requirements of this section.
    11    d.  "residential  real  property"  shall  mean a building or buildings
    12  consisting of one to three dwelling units.
    13    e. "signatory" shall mean the person or  persons  whose  signature  is
    14  being acknowledged by a notary public or commissioner of deeds.
    15    3. A notary appointed and commissioned as a notary in this state shall
    16  create  a  notarial  record of each notarial act performed in connection
    17  with a document of conveyance. The notarial record shall contain:
    18    a. the date of the notarial act;
    19    b. the type, title or description of the document of conveyance  being
    20  notarized,  the property index number ("PIN") used to identify the resi-
    21  dential real property for  assessment  or  taxation  purposes,  and  the
    22  common  street  address  for  the  residential real property that is the
    23  subject of the document of conveyance;
    24    c. the signature, printed name and residence street  address  of  each
    25  person whose signature is the subject of the notarial act, and a certif-
    26  ication  by the person that the property is residential real property as
    27  defined in this section;
    28    d. a description of the satisfactory evidence reviewed by  the  notary
    29  to  determine  the identity of the person whose signature is the subject
    30  of the notarial act. Satisfactory evidence shall include presentation of
    31  any one of the following documents identifying the signatory or signato-
    32  ries:
    33    (i) a valid driver's license or non-driver identification card  issued
    34  by  the  commissioner  of  motor  vehicles,  the federal government, any
    35  United States territory, Commonwealth or  possession,  the  District  of
    36  Columbia, or a state government within the United States;
    37    (ii) a valid passport issued by the United States government;
    38    (iii) a valid passport issued by a foreign government; or
    39    (iv)  a valid municipal identification card issued pursuant to section
    40  3-115 of the administrative code of the city of New York; and
    41    e. the date of notarization, the fee charged for the notarial act, the
    42  notary's home or business phone number, the notary's business  or  resi-
    43  dence  street  address,  the  notary's  commission  expiration date, the
    44  correct legal name of the notary's employer or principal, and the  busi-
    45  ness street address of the notary's employer or principal.
    46    4.  The  notarial  record  required  under  subdivision  three of this
    47  section shall be created and maintained for  each  person  or  represen-
    48  tative  whose  signature  is  the  subject of a notarial act regarding a
    49  document of conveyance. It shall be in substantially the following form:
    50  NOTARIAL RECORD:
    51                                DEED TRANSFER
    52  I, ________________________(GRANTOR) HEREBY AUTHORIZE  THE  TRANSFER  OF
    53  OWNERSHIP OF MY PROPERTY TO THE GRANTEE DESIGNATED BELOW. I UNDERSTAND I
    54  MAY BE TRANSFERRING OWNERSHIP OF MY HOME.
    55  Date Notarized:
    56  Fee: $
        A. 10425                            3
     1  The  undersigned grantor hereby certifies that the real property identi-
     2  fied in this notarial record is residential real property as defined  in
     3  section 135-c of the executive law.
     4  Grantor's (Signer's) Printed Name:
     5  Grantor's (Signer's) Signature:
     6  Grantor's  (Signer's)  Residential  Street  Address, City, State and Zip
     7  Code:
     8  Grantee's Relationship to Grantor:
     9  Grantee's (Signer's) Printed Name:
    10  Grantee's (Signer's) Signature:
    11  Grantee's (Signer's) Residential Street Address,  City,  State  and  Zip
    12  Code:
    13  Type or Name of Document of Conveyance:
    14  PIN No. of Residential Real Property:
    15  Common Street Address of Residential Real Property:
    16  Description of Means of Identification:
    17  Additional Comments:
    18  Name of Notary Printed:
    19  Notary Phone Number:
    20  Commission Expiration Date:
    21  Street Address of Notary, City, State and Zip Code:
    22  Name of Notary's Employer or Principal:
    23  Business  Street  Address of Notary's Employer or Principal, City, State
    24  and Zip Code:
    25    5. Filing of the notarial record. The notary shall file  the  notarial
    26  record in accordance with the procedures set forth in this subdivision.
    27    a. Except as provided in paragraph b of this subdivision, the notarial
    28  record  shall  be  delivered  no  later  than  fourteen days after it is
    29  created to the clerk or office of the register of  the  county  or  city
    30  within which the residential property that is the subject of the convey-
    31  ance is located.
    32    b.  If the notarial record was created by a notary public in the scope
    33  of his or her employment  with  a  title  insurance  company,  financial
    34  institution, law firm or attorney at law, the notary public shall deliv-
    35  er  the  notarial record no later than fourteen days after it is created
    36  to such title insurance corporation, financial institution, law firm  or
    37  attorney  at law.   Such title insurance corporation, financial institu-
    38  tion, law firm or attorney at law, or any successor or assignee of  such
    39  title insurance corporation, financial institution, law firm or attorney
    40  at law within the seven-year retention period, shall retain the notarial
    41  record  and may disclose such record only as permitted under subdivision
    42  seven of this section.
    43    6. The notarial record shall be retained for seven years in accordance
    44  with the confidentiality and disclosure provisions established in subdi-
    45  vision seven of this section. No copies of the original notarial  record
    46  may  be made or retained by the notary. The notary's employer or princi-
    47  pal pursuant to paragraph b of subdivision five of this  section,  or  a
    48  notary  attorney  acting  within  the scope of his or her employment may
    49  retain copies of the notarial records as business  records,  subject  to
    50  applicable privacy and confidentiality standards outlined in subdivision
    51  seven of this section.
    52    7.  The  notarial record shall not be disclosed nor shall its contents
    53  be made known except as provided in this subdivision.
    54    a. A certified copy of a notarial record  shall  be  provided  to  the
    55  United  States  or  any  department thereof, the state or any department
        A. 10425                            4
     1  thereof, and the city of New York or any  department  thereof,  provided
     2  that such notarial record is required for official business.
     3    b.  A certified copy of a notarial record shall be provided in accord-
     4  ance with a judicial order.
     5    c. Upon written request by the grantor or a  legal  representative  of
     6  the grantor who is named in the notarial record.
     7    8.  Any  person  or  entity  violating  the provisions of this section
     8  shall, in addition to all other penalties provided by law, be liable for
     9  a civil penalty of up  to  two  hundred  fifty  dollars  for  each  such
    10  violation.  The  secretary of state may assess such penalty following an
    11  adjudicatory proceeding conducted in accordance with the state  adminis-
    12  trative procedure act.
    13    9.  The  failure of a notary to comply with the procedure set forth in
    14  this section shall not affect the validity of the residential real prop-
    15  erty transaction in connection to which the document  of  conveyance  is
    16  executed, in the absence of fraud.
    17    §  2.  Section  136  of  the  executive law is amended by adding a new
    18  subdivision 3 to read as follows:
    19    3. For performing a notarial act related to a document  of  conveyance
    20  for  which a notarial record is required pursuant to section one hundred
    21  thirty-five-c of this article, the notary may charge a  fee  of  twenty-
    22  five  dollars  in  addition  to  any  fees required to file the notarial
    23  record.
    24    § 3. This act shall take effect immediately.