BILL NUMBER: S5602
SPONSOR: MAY
 
TITLE OF BILL:
An act to amend the general business law, in relation to certain real
estate syndication offerings
 
PURPOSE:
Relates to certain real estate syndication offerings
 
SUMMARY OF PROVISIONS:
Section 1. Amends Subdivision 4 of Section 157 of the General Business
Law, to revise the definition of "time share" outside a city with a
population of one million or more.
Section 2. Amends Paragraph (a) of subdivision 1 of Section 352-e of the
General Business Law to exempt timeshares with ten or fewer purchasers
from filing requirements for properties whose sale price exceeds two
times the median sales price for residential property in the county
where the property is located.
Section 3. Effective Date
 
JUSTIFICATION:
New York's Truth in Travel Act (TITA) and Martin Act restrict New York-
ers' ability to participate in co-ownership because they define any
ownership arrangement involving three or more purchasers as a "time
share." These laws inaccurately categorize common co-ownership arrange-
ments as time shares and subject them to onerous regulatory requirements
for which private co-owners could not reasonably comply.
These laws also fail to reflect the prevalence of co-ownership that
already exists and leave thousands of New Yorkers at risk of technical
violations. Today, 13% of all second homes in New York are owned in an
LLC, trust or similar vehicle, which enable multiple owner arrangements.
Modern co-ownership bears no resemblance to the vacation travel or
timeshare schemes the Truth in Travel and Martin Acts were designed to
prevent. In contrast, co-ownership involves the purchase of a whole home
by multiple buyers, just like family and friends who co-own homes
together today. Like whole homes, co-owned properties are listed on the
MLS and sold through real estate brokerages. This update would maintain
important consumer protection safeguards while creating housing opportu-
nities for New Yorkers who wish to enrich their lives-or already
do-through co-ownership.
 
LEGISLATIVE HISTORY:
2023-24: S.538 (Thomas) / A.934 (Vanel)
2021-22: S.7091 (Thomas) / A.9674 (Vanel)
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
Shall take effect 90 days after becoming law.

Statutes affected:
S5602: 157 general business law, 157(4) general business law, 352-e general business law, 352-e(1) general business law