New York Strengthens Protections Against the Rising Crime of Deed Fraud

The new legislation significantly alters New York's property laws to address the escalating issue of deed fraud in the state. Specifically, it adds Real Property Actions and Proceedings Law ("RPAPL”) §756-a and amends §1501. RPAPL §756-a was amended to create a "stay of action or proceeding when a party's claim to title is in dispute" and RPAPL §1501 now reads… "Where a person has been convicted of a criminal offense in connection with a deed theft or fraudulent transaction involving real property, the conviction creates a rebuttable presumption that such deed transfer was fraudulent." 

How Does Deed Theft Happen? 

Deed theft is a deceitful practice in which property owners are tricked into losing the title to their homes. This fraud is increasing at an alarming rate. 

Key Measures of the New Laws:

The newly signed legislation includes several key provisions to help resolve property title disputes, combat fraudulent transactions, and add protections for homeowners and victims of this type of theft: 

• Courts Are Required to Stay Eviction Proceedings 

• Added Protections for At-Risk Homeowners 

• Notice of Fraud 

• Notice of Pendency 
  

Conclusion:

The new laws aspire to add more efficiency to how homeowners and New York State can combat deed theft.

This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship. 

For more information on this and other topics, please contact Kevin via any of the channels listed below:

📧 kevin@kmckernan.com  | 📞 718-317-5007