New York Gov. Kathy Hochul signed legislation designed to protect state residents from deed theft.
Legislation S.6577/A.6656 enables the New York State Attorney General and local district attorneys investigating or litigating deed theft to pause related eviction and ownership dispute proceedings and expanding the list of crimes that allow prosecutors to invalidate fraudulent sale and loan documents. Upon finding probable cause or filing criminal charges, the attorney general and district attorneys now may file a notice of pendency as a “red flag” to make buyers and lenders aware of title issues to help stop further transactions from happening.
The legislation also expands the ability of prosecutors to move to void fraudulent instruments affecting ownership of and interests in property by adding to the list of crimes that can be the basis for voiding the instruments. Unless a defendant can prove otherwise, the legislation creates a legal presumption that a deed transfer was fraudulent in civil disputes over ownership when a party to the transfer has been convicted of deed theft or related fraud with respect to that property, which helps victims of deed theft fighting to maintain their ownership rights in civil court.
“This legislation is New York’s strongest tool yet to crack down on illegal deed theft and put the American Dream back in the hands of thousands of New York homeowners,” Hochul said. “Deed theft cheats hardworking New Yorkers out of the opportunity to own and keep their homes and forces families out of their communities – particularly in Black and Brown neighborhoods. With the protections enshrined in this legislation, however, we are empowering homeowners and law enforcement to fight back against deed theft and keeping families, homes, and communities intact.”
Photo: Susan Watts / Office of Governor Kathy Hochul
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