STATE OF NEW YORK
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1569
2017-2018 Regular Sessions
IN ASSEMBLY
January 12, 2017
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Introduced by M. of A. MOSLEY, WEINSTEIN, LENTOL, BARRON, COOK, HYNDMAN,
TITUS, WALKER -- Multi-Sponsored by -- M. of A. NOLAN -- read once and
referred to the Committee on Judiciary
AN ACT to amend the real property law, in relation to rebuttal of the
right of an incumbrancer
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 is amended to read as
2 follows:
3 § 266. Rights of purchaser or incumbrancer for valuable consideration
4 protected. This article does not in any manner affect or impair the
5 title of a purchaser or incumbrancer for a valuable consideration,
6 unless it appears that he had previous notice of the fraudulent intent
7 of his immediate grantor, or of the fraud rendering void the title of
8 such grantor. There shall be a rebuttable presumption that this section
9 shall not apply in the case of a transfer of mortgaged real property,
10 between a purchaser and seller who are not associated parties, that is
11 not accompanied by the recording with the clerk of the county or with
12 the commissioner of deeds in which the property is located, of a state-
13 ment, executed by the mortgagee, and duly acknowledged, stating,
14 substantially, that (1) a party is assuming the seller's indebtedness
15 secured by the mortgage; or (2) that the indebtedness secured by the
16 mortgage has been satisfied.
17 For the purposes of this section, "associated parties" means spouses,
18 ex-spouses, parents and children, siblings, a homeowner and that home-
19 owner's family trust, or a homeowner and that homeowner's wholly-owned
20 limited liability company.
21 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04039-01-7
