New York A 2745: Relates to protections for victims of real property theft

Bill Text

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A02745 Summary:

BILL NOA02745 

&nbsp

SAME ASSAME AS S06362

&nbsp

SPONSORCruz

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §266, RP L; amd §6501, CPLR

&nbsp

Relates to protections for victims of real property theft, providing for a rebuttable presumption that a purchaser or incumbrancer has notice of fraud or fraudulent intent in certain circumstances.

Go to top A02745 Actions:

BILL NOA02745 

&nbsp

01/22/2025referred to judiciary

01/07/2026referred to judiciary

Go to topA02745 Committee&nbspVotes:

Go to topA02745 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA02745 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 2745

 2025-2026 Regular Sessions

 IN ASSEMBLY

 January 22, 2025
 ___________

 Introduced by M. of A. CRUZ -- read once and referred to the Committee
 on Judiciary

 AN ACT to amend the real property law and the civil practice law and
 rules, in relation to protections for victims of real property theft

 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, as amended by chapter
 2 630 of the laws of 2023, is amended to read as follows:
 3 § 266. 1. Rights of purchaser or incumbrancer for valuable consider-
 4 ation protected. This article does not in any manner affect or impair
 5 the title of a purchaser or incumbrancer for a valuable consideration,
 6 unless it appears that such purchaser or incumbrancer had previous
 7 notice, whether actual or constructive, of the fraudulent intent of his
 8 immediate grantor, or of the fraud rendering void the title of such
 9 grantor. There shall be a rebuttable presumption, which presumption may
 10 be overcome by an acceptable affidavit or testimony of the purchaser,
 11 that a purchaser or incumbrancer had notice of fraud or fraudulent
 12 intent in the case of a transfer of mortgaged real property, between a
 13 purchaser and seller who are not associated parties, [that is not accom-
 14 panied by] when none of the following have occurred:
 15 (a) the recording with the clerk of the county or with the commission-
 16 er of deeds in which the property is located, of [a statement]:
 17 (i) an instrument, executed by the party assuming the seller's indebt-
 18 edness secured by the mortgage and the mortgagee, [and duly acknowl-
 19 edged, stating, substantially, that (a) a party is assuming the seller's
 20 indebtedness secured by the mortgage; or (b) that the indebtedness
 21 secured by the mortgage has been satisfied] whereby the mortgage is
 22 assumed; or
 23 (ii) a satisfaction of mortgage or a release of mortgage;
 24 (b) the purchaser offers evidence, via written or oral testimony, that
 25 they reasonably believed the indebtedness secured by the mortgage has

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05455-01-5

 A. 2745 2

 1 been paid off, which evidence may include but not be limited to copies
 2 of a payoff statement or settlement statement accompanied with copies of
 3 the checks or wire transmittals used to pay the mortgage off, a title
 4 insurance policy showing that the mortgage was not excepted in the
 5 grantor's title insurance policy, or a title insurance policy showing
 6 that the mortgage was not excepted in the grantee's title insurance
 7 policy.
 8 2. For the purposes of this section, "associated parties" means spous-
 9 es, ex-spouses, parents and children, siblings, a homeowner and that
 10 homeowner's family trust, or a homeowner and that homeowner's wholly-
 11 owned limited liability company.
 12 § 2. Subdivision (c) of section 6501 of the civil practice law and
 13 rules, as added by chapter 630 of the laws of 2023, is amended and a new
 14 subdivision (d) is added to read as follows:
 15 (c) Notwithstanding any provision of subdivision (a) of this section
 16 to the contrary, a notice of pendency [may shall be filed by a district
 17 attorney's office or the office of the attorney general upon the filing
 18 of a criminal complaint or indictment that allege charges affecting the
 19 title to, incumbrance of or possession of real property, in the county
 20 where the real property is located. [A not