Bill Text: NY S01475 | 2025-2026 | 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) 2025-01-10 - REFERRED TO JUDICIARY [S01475 Detail]

Download: New_York-2025-S01475-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1475

                               2025-2026 Regular Sessions

                    IN SENATE

                                    January 10, 2025
                                       ___________

        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] such vendor or assignor's distributees or devisees,  and
    17  whose  conveyance, contract or assignment is first duly recorded, and is
    18  void as against the lien upon the same  real  property  or  any  portion
    19  thereof  arising from payments made upon the execution of or pursuant to
    20  the terms of a contract  with  the  same  vendor,  [his]  such  vendor's
    21  distributees  or devisees, if such contract is made in good faith and is
    22  first duly recorded.  Notwithstanding the foregoing, any increase in the
    23  principal balance of a mortgage lien by virtue of the  addition  thereto
    24  of  unpaid  interest  in accordance with the terms of the mortgage shall

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04538-01-5
        S. 1475                             2

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

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

    13  Block #__________  Lot #________

    14  Located At: ___________________________
    15                    street address

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

    20  To: ______________________________
    21            name of new owner

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