BILL NUMBER: S1475
SPONSOR: BORRELLO
 
TITLE OF BILL:
An act to amend the real property law, in relation to excluding certain
real property conveyances from the written notice requirement
 
PURPOSE:
The purpose of this bill is to exempt counties from a written notice
requirement when they convey property obtained by an Article 11 tax
foreclosure.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. This section exempts the State and all counties from the Real
Property Law Section 291 written notice requirement when conveying prop-
erty related to an Article 11 tax foreclosure.
Section 2. This act shall take effect immediately.
 
JUSTIFICATION:
In 2020, the Real Property Law was amended requiring a County Clerk or
City Registrar notify property owners when a conveyance of their proper-
ty is recorded. Under current law, this written notice requirement
applies to counties when they convey property that they received as a
result of a tax foreclosure. Counties that take title to property
because of foreclosure do so with the intention of selling it to a new
owner or transferring it back to a redeeming owner. The county works
closely with the clerk's office and, in some cases, the county pays the
mailing fee for the notice. Counties hold title to these properties for
a short amount of time and work with the homeowner to prevent the type
of fraud that the notice requirement was designed to protect against.
This amendment would exempt the county from the written notice require-
ment, and therefore the fee, because the county does not require notice
of the process that it initiated and is carrying out.
 
PRIOR LEGISLATIVE HISTORY:
2024: S1224/A2403 Referred to Judiciary
2023: S1224/A2403 Referred to Judiciary
2022: S.7751 Referred to Judiciary
 
EFFECTIVE DATE:
This act shall take effect immediately.