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A01228 Summary:

BILL NOA01228
 
SAME ASNo Same As
 
SPONSORJacobson
 
COSPNSR
 
MLTSPNSR
 
Add §259, RP L
 
Requires certain sellers of real property to provide a certificate of occupancy to the purchaser of the real property.
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A01228 Actions:

BILL NOA01228
 
01/13/2023referred to judiciary
01/03/2024referred to judiciary
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A01228 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1228
 
SPONSOR: Jacobson
  TITLE OF BILL: An act to amend the real property law, in relation to requiring that certain sellers of real property provide a certificate of occupancy to the purchaser of the real property   PURPOSE OR GENERAL IDEA OF BILL: This bill will require that most sellers of real property provide a certificate of occupancy to the purchaser of the real property.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends the real property law by adding a new section 259 to require disclosure to purchaser or prospective purchaser, or the agent of the purchaser or prospective purchaser, providing them with a copy of a certificate of occupancy for the real property that is the subject of the deed of sale. Such certificate shall have been issued within 30 days of the date of transfer of ownership of the property. The provisions of this section shall not apply to transfers of real property: (a) to a relative of the owner; (b) made pursuant to a court order, including but not limited to transfers by a referee in a foreclosure action, to a party in a divorce proceeding or by a bankruptcy trustee in a bankruptcy or reorganization proceeding; (c) by a municipality; (d) by an executor or administrator of an estate; (e) by a beneficiary of an estate provided such transfer is made within sixty days of the date on which the beneficiary acquired title to the property; (0 by a deed in lieu of foreclosure; (g) due to the operation of law pursuant to a deed, includ- ing but not limited to a tax deed; or (h) of real property that does not have a dwelling located thereon. Any agreement by a purchaser of premises for dwelling purposes waiving or modifying his or her rights as set forth in this section shall be void as contrary to public policy. Section 2 sets forth the effective date which is 120 days after enact- ment.   JUSTIFICATION: Code enforcement is generally a reactive not a proactive process. Unfortunately, in most municipalities, code enforcement is spotty and infrequent due to lack of funding and the need to inspect so many prop- erties. Usually, code enforcement officials act upon tenants' complaints or visible violations rather than on a regular, continuing basis. Because transfers of property occur based on old Certificates of Occu- pancy, tenants and new purchasers are unable to ascertain the exact status of the property involved. While private inspections by prospec- tive purchasers are available, there is no requirement that the suggested repairs be made; due to the economics involved, repairs are either left unmade or made only to bring a home to a "working order" condition. Tenants are normally presented with a take-it-or leave-it situation with only minimal repairs (e.g. appliances, painting) being done. Every municipality has its horror stories. Tragically, in the City of Newburgh in March 2015, three people died due to carbon monoxide poison- ing in a multi-family house which did not have carbon monoxide detec- tors. By requiring a new Certificate of Occupancy upon transfer of property, more buildings will be kept up to code. Tenants and those purchasing properties will be assured of premises which are up to code. This will mean better living conditions as well as safer premises which should lead to a lower likelihood of fires due to old electrical or heating systems.   PRIOR LEGISLATIVE HISTORY: 2019-2020: A10190 - Referred to Assembly Judiciary Committee 2021-2022: A360 - Referred to Assembly Judiciary Committee   FISCAL IMPLICATIONS TO STATE AND LOCAL GOVERNMENTS: None to State. Possible net gain in proceeds to local governments through fees charged for code inspections.   EFFECTIVE DATE: One hundred twenty days succeeding the date upon which it shall have become a law.
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A01228 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1228
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 13, 2023
                                       ___________
 
        Introduced by M. of A. JACOBSON -- read once and referred to the Commit-
          tee on Judiciary
 
        AN  ACT  to  amend  the real property law, in relation to requiring that
          certain sellers of real property provide a certificate of occupancy to
          the purchaser of the real property

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  real property law is amended by adding a new section
     2  259 to read as follows:
     3    § 259. Certificates of occupancy; required disclosure to purchaser. 1.
     4  Prior to executing a deed  of  sale  with  a  purchaser  or  prospective
     5  purchaser of real property, the owner of the real property shall provide
     6  the purchaser or prospective purchaser, or the agent of the purchaser or
     7  prospective purchaser, with a copy of a certificate of occupancy for the
     8  real  property that is the subject of the deed of sale. Such certificate
     9  shall have been issued within thirty days of the  date  of  transfer  of
    10  ownership on the property.
    11    2. The provisions of this section shall not apply to transfers of real
    12  property:
    13    (a) to a relative of the owner;
    14    (b)  made  pursuant  to  a  court  order, including but not limited to
    15  transfers by a referee in a foreclosure action, to a party in a  divorce
    16  proceeding  or by a bankruptcy trustee in a bankruptcy or reorganization
    17  proceeding;
    18    (c) by a municipality;
    19    (d) by an executor or administrator of an estate;
    20    (e) by a beneficiary of an estate provided such transfer is made with-
    21  in sixty days of the date on which the beneficiary acquired title to the
    22  property;
    23    (f) by a deed in lieu of foreclosure;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02387-01-3

        A. 1228                             2
 
     1    (g) due to the operation of law pursuant to a deed, including but  not
     2  limited to a tax deed; or
     3    (h) of real property that does not have a dwelling located thereon.
     4    3.  Any  agreement  by  a  purchaser of premises for dwelling purposes
     5  waiving or modifying his or her rights as  set  forth  in  this  section
     6  shall be void as contrary to public policy.
     7    § 2. This act shall take effect on the one hundred twentieth day after
     8  it shall have become a law.
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