Bill > A02745

This bill modifies New York's real property law to provide additional protections for victims of real property theft by establishing a rebuttable presumption of fraud in certain property transfer situations. Specifically, the bill creates a legal presumption that a property purchaser had notice of fraud when transferring mortgaged real property between unassociated parties, unless certain conditions are met. These conditions include recording specific documents like mortgage assumption or satisfaction instruments, or the purchaser providing evidence that they reasonably believed the mortgage was paid off, such as payoff statements, settlement documents, or title insurance policies. The bill also expands the ability of district attorneys and the attorney general to file notices of pendency (legal notices that alert potential buyers to ongoing legal disputes about a property) in criminal cases involving real property, allowing these notices to remain in effect for three years and be renewed twice. Additionally, the bill defines "associated parties" as including spouses, ex-spouses, parents, children, siblings, family trusts, and wholly-owned limited liability companies. The legislation aims to provide more transparency and protection in real estate transactions by making it easier to identify and challenge potentially fraudulent property transfers.

Justice

https://www.nysenate.gov/legislation/bills/2025/A2745