Bill > S07721

This bill establishes legal protections against deed theft, a fraudulent practice where someone transfers or encumbers property ownership without the rightful owner's approval or knowledge. The bill defines deed theft broadly, including actions like forging documents, misrepresenting ownership, transferring property through fraud, or deliberately concealing relevant information. Victims of deed theft can now sue not only the direct perpetrators (deed thieves) but also banks and title insurance corporations that negligently facilitate such theft. If a victim proves deed theft, they can recover treble (triple) damages and attorneys' fees. The bill considers the relative sophistication and vulnerability of parties when evaluating intent, and provides different standards of recovery depending on whether the bank or title insurance corporation knowingly or recklessly facilitated the theft versus negligently participating. For example, if a bank provides a loan that assists a deed thief without conducting reasonable due diligence, the victim can sue that bank. The legislation aims to provide stronger legal recourse for property owners who have been fraudulently dispossessed and to create additional deterrents against such criminal activities by holding facilitating institutions accountable.

Justice

https://www.nysenate.gov/legislation/bills/2025/S7721