A 2745: 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.

  
  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 notice of pendency filed will 21 remain in effect until the prosecution of a criminal case is either 22 dismissed, or otherwise disposed of at sentencing and is not subject to 23 a three year period of expiration under section six thousand five 24 hundred thirteen of this article] Such notice of pendency shall remain 25 in effect for a period of three years pursuant to section sixty-five 26 hundred thirteen of this article but may be renewed without court order 27 twice. 28 (d) Any notice of pendency filed pursuant to subdivision (b) or (c) of 29 this section shall be cancelled within thirty days pursuant to subdivi- 30 sion (e) of section six thousand fourteen of this article when the 31 investigation or action is no longer ongoing. 32 § 3. This act shall take effect on the thirtieth day after it shall 33 have become a law.