STATE OF NEW YORK
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2465
2019-2020 Regular Sessions
IN SENATE
January 25, 2019
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Introduced by Sen. SANDERS -- read twice and ordered printed, and when
printed to be committed to the Committee on Judiciary
AN ACT to amend the real property law, in relation to prohibiting mort-
gagors from recovering attorney's fees and/or expenses incurred during
a foreclosure
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 282 of the real property law, as added by chapter
2 550 of the laws of 2010, is amended to read as follows:
3 § 282. [Mortgagor's right to recover] Mortgagors prohibited from
4 recovering attorneys' fees in actions or proceedings arising out of
5 foreclosures of residential property. 1. [Whenever a covenant contained
6 in a mortgage on residential real property shall provide that in any
7 action or proceeding to foreclose the mortgage that the mortgagee may
8 recover attorneys' fees and/or expenses incurred as the result of the
9 failure of the mortgagor to perform any covenant or agreement contained
10 in such mortgage, or that amounts paid by the mortgagee therefor shall
11 be paid by the mortgagor as additional payment, there shall be implied
12 in such mortgage a covenant by the mortgagee to pay to the mortgagor the
13 reasonable] In the foreclosure of residential property mortgagors are
14 prohibited from recovering from the mortgagees any attorneys' fees
15 and/or expenses incurred by the mortgagor as the result of the failure
16 of the mortgagee to perform any covenant or agreement on its part to be
17 performed under the mortgage or in the successful defense of any action
18 or proceeding commenced by the mortgagee against the mortgagor arising
19 out of the contract, and an agreement that such fees and expenses may be
20 recovered [as provided by law in an action commenced against the mortga-
21 gee or by way of counterclaim in any action or proceeding commenced by
22 the mortgagee against the mortgagor. Any waiver of this section shall be
23 void as against public policy] is void.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08745-01-9
S. 2465 2
1 2. For the purposes of this section, "residential real property" means
2 real property improved by a one- to four-family residence, a condominium
3 that is occupied by the mortgagor or a cooperative unit that is occupied
4 by the mortgagor.
5 § 2. This act shall take effect immediately.