Relates to recording instruments affecting real estate and chattels real

Sections two and three amend the Criminal Procedure Law to provide for a proceeding by which a false instrument affecting real property may be declared void ab initio.

Section four amends section 131 of the Executive Law to add a requirement that notary public applicants submit fingerprints during the application process and sets forth a procedure for processing such fingerprints.

Section five adds a new section 135-C to the Executive Law, establishing new requirements for notaries public and New York City commissioners of deeds related to acts involving conveyances of certain New York City residential real property. Under section 135-C, notaries public and New York City commissioners of deeds will be required to complete a notarial record for acts related to written instruments by which the title to certain New York City residential real property may be transferred. Section 135-C also sets forth requirements related to retention and disclosure of the notarial record, and imposes a $250 penalty for violation of its provisions.

Section six sets the fee for acts requiring a notarial record to not greater than twenty-five dollars.

Section seven amends section 175.35 of the Penal Law to provide that knowingly procuring and presenting for filing or recording an instrument affecting real property that contains a false statement or false information constitutes the crime of offering a false instrument for filing in the first degree.

Section eight of the bill amends section 7-607 of the New York City Administrative Code to require the Offices of the City Register to accept instruments affecting real property by electronic means for recording.

Section nine requires the names of the members of limited liability companies to be disclosed on the returns required to be filed upon the transfer of real property.

Reasons for support

Complaints regarding deed fraud involving certain New York City residential real property have become more prevalent, and the City is actively involved in responding to claims. The New York City Department of Finance has implemented a program pursuant to which it reviews instruments related to property conveyances submitted for recording and reports suspicious activity to the New York City Sheriff's Office for investigation. Since the inception of this program in July 2014, the Sheriff's Office has received over 750 cases for investigation, initiated over 100 criminal investigations, and executed 9 arrests. This bill will give the City additional tools to deter deed fraud by imposing stricter recording requirements for instruments related to conveyances of certain residential real property within the City, and providing for improved methods of identifying individuals involved in deed fraud, tougher penalties for fraudulent acts, and additional means of recourse for victims of fraud. The bill will also make it easier to ensure that notary public applicants have not been convicted of any disqualifying crimes. Finally, the bill clarifies that the Offices of the City Register and the Richmond County Clerk must accept electronic versions of instruments affecting real property for recording.