Bill > A08863

This bill establishes legal protections against deed theft, a form of property fraud where someone transfers or encumbers real estate ownership without the rightful owner's knowledge or consent. The bill defines "deed theft" as any actions involving fraudulent property transfer, such as forging documents, misrepresenting ownership, or using deceptive practices to obtain property rights. It creates a private right of action allowing victims to sue deed thieves, banks, and title insurance corporations that negligently facilitate such theft. Victims can recover damages, with the potential to receive treble (triple) damages and attorneys' fees depending on the circumstances. The bill specifically allows legal action against parties who: alter property documents, misrepresent ownership, transfer property through fraudulent means, or fail to disclose critical information. When evaluating cases, courts must consider the relative sophistication and vulnerability of the parties involved. The legislation covers both residential and commercial properties and provides different standards of recovery based on whether the facilitating institution (bank or title insurance company) knowingly or recklessly assisted in the deed theft. The act will take effect 90 days after becoming law, providing a new legal mechanism to protect property owners from fraudulent transfers.

Justice

https://www.nysenate.gov/legislation/bills/2025/A8863