Bill > S07732

This bill amends New York's insurance law to prohibit title insurance corporations from making payments to lenders on title insurance claims when the property transaction is determined to be false or fraudulent. Specifically, the legislation targets deed theft scenarios, where property ownership might be illegally transferred without the rightful owner's consent. Under this new provision, title insurance companies would be legally forbidden from reimbursing lenders for claims arising from transactions that are proven to be fraudulent, effectively creating a deterrent against potential property transfer fraud. The bill, known as the "deed theft: bank and lender accountability act," would take effect 90 days after becoming law, and applies to all persons, firms, associations, or corporations organized under the relevant insurance article. By preventing insurance payments for fraudulent transactions, the bill aims to provide an additional layer of protection for property owners and discourage potential fraudulent property transfers.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S7732