BILL NUMBER: S3737
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the real property law and the banking law, in relation
to preventing fraudulent deed transfers
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would prevent unscrupulous investors from taking advantage of
distressed homeowners by having them signed a deed, in most cases
unknowingly, to transfer ownership of property under the guise that by
doing so, they would receive assistance in saving their property from
foreclosure.
 
SUMMARY OF PROVISIONS:
This legislation seeks to prevent distressed homeowners from being
tricked into signing a deed transferring ownership of their property to
a third parties because they are seeking assistance to save their home
from foreclosure. in two ways. First, by requiring all deeds to include
mandatory language in bold letters that clearly informs the title owner
by signing the deed they are transferring ownership of said property,
which must be signed and notarized. Second, prohibits any deed transfer
to be done in order to apply for a modification. Authorizes the divi-
sion of financial services to investigate all fraudulent deed transfers.
It also makes it a crime to executive a deed transfers without providing
the required warning to owner of property.
 
JUSTIFICATION:
Distressed homeowners who are desperate to save their home from foreclo-
sure are often victims of fraudulent deed transfer by unscrupulous
investors through deceptive practices resulting in the permanent loss of
their home and property. Victims of fraudulent deed transfer often time
may not be aware that by signing a deed they are transferring ownership
to a third party. This legislation aims to protect distressed homeowners
by informing them of the consequences of signing such deed and author-
izes DFS to investigate such complaint, which currently does not exist.
 
PRIOR LEGISLATIVE HISTORY:
2021-22 REFERRED TO SENATE JUDICIARY
2021-22 referred to assembly judiciary
2020 REFERRED TO SENATE JUDICIARY
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
There is no fiscal impact to the State, but may generate revenue for the
state in the form of fines.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S3737: 333 real property law, 6-n banking law, 14 banking law, 14(1) banking law