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.
