What's happening
This bill requires notaries and commissioners of deeds to create, file, and retain detailed records for notarizations involving residential property conveyance, with added privacy and penalty provisions.
Why it matters
Enhanced safeguards against property fraud. By requiring a detailed notarial record for most residential property transfers, the bill aims to deter and detect fraudulent deed transfers, which can result in homeowners losing their property without consent.
Increased accountability and traceability. The mandated notarial record includes extensive information about the signatories, the property, the notary, and the context of the transfer, making it easier for authorities and affected parties to investigate suspicious transactions or verify authenticity.
Stronger privacy protections and controlled access. The bill limits who may access the notarial records and under what circumstances (such as government need, court order, or written request by the grantor), reducing the risk of misuse of sensitive personal information.
Meaningful consequences for non-compliance. Civil penalties for violators, alongside professional oversight by the Secretary of State, create enforceable standards and encourage notaries and related professionals to comply with the new procedures, thereby strengthening the integrity of New York’s property transfer process.
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Who cares
Headline styles
Track Home Deed Transfers
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to finance
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.596
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Track Home Sale Documents
Assembly Floor Calendar · Sponsor Latrice Walker
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
812
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the executive law, in relation to the requirements for notaries public and commissioners of deeds relating to certain instruments affecting real property
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The executive law is amended by adding a new section 135-c to read as follows:
§ 135-c. Requirements of notaries public and commissioners of deeds related to certain instruments affecting real property. 1. This section shall apply to every notarial act in the state involving a document of conveyance that transfers or purports to transfer title with respect to residential real property located in the state. It shall also apply to commissioners of deeds appointed pursuant to section one hundred forty of this article.
2. As used in this section, the following terms shall have the following meanings:
a. "document of conveyance" shall mean a written instrument that transfers or purports to transfer title effecting a change in ownership to residential real property, excluding:
(i) court ordered or court-authorized transfer of residential real property including but not limited to a transfer between spouses or former spouses as a result of a decree of divorce, dissolution of marriage, annulment, or legal separation, or as a result of property settlement, or agreement incidental to a decree of divorce, dissolution of marriage, annulment, or legal separation;
(ii) a transfer order by a probate court during the administration of a decedent's estate;
(iii) a judgment of a foreclosure and sale, or a levy pursuant to an execution;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05942-01-9
S. 812 2
(iv) a court ordered voiding of an instrument affecting real property;
(v) a transfer of property to a trust in which the beneficiary is or includes the grantor; and
(vi) a deed from a grantor to himself or herself that is intended to change the nature or type of tenancy by which he or she owns residential real property.
b. "financial institution" shall mean a bank, trust company, savings institution, or credit union, chartered and supervised under state or federal law.
c. "notarial record" shall mean the written document created in conformity with the requirements of this section.
d. "residential real property" shall mean a building or buildings consisting of one to three dwelling units where the square footage of the residential portion exceeds the square footage of any commercial portion.
e. "signatory" shall mean the person or persons whose signature is being acknowledged by a notary public or commissioner of deeds.
3. A notary appointed and commissioned as a notary in this state and a commissioner of deeds shall create a notarial record of each notarial act performed in connection with a document of conveyance. The notarial record shall contain:
a. the date of the notarial act;
b. the type, title or description of the document of conveyance being notarized, the block and lot number used to identify the residential real property for assessment or taxation purposes, and the common street address for the residential real property that is the subject of the document of conveyance;
c. the signature, printed name and residence street address of each person whose signature is the subject of the notarial act, and a certification by the person that the property is residential real property as defined in this section;
d. a description of the satisfactory evidence reviewed by the notary or the commissioner of deeds to determine the identity of the person whose signature is the subject of the notarial act. Satisfactory evidence shall include presentation of any one of the following documents identifying the signatory or signatories:
(i) a valid driver's license or non-driver identification card issued by the commissioner of motor vehicles, the federal government, any United States territory, Commonwealth or possession, the District of Columbia, or a state government within the United States;
(ii) a valid passport issued by the United States government;
(iii) a valid passport issued by a foreign government; or
(iv) a valid municipal identification card issued pursuant to section 3-115 of the administrative code of the city of New York; and
e. the date of notarization, the fee charged for the notarial act, the notary's home or business phone number, the notary's business or residence street address, the notary's commission expiration date or the commissioner of deeds appointment expiration date, the correct legal name of the notary's employer or principal, and the business street address of the notary's employer or principal.
4. The notarial record required under subdivision three of this section shall be created and maintained for each person or representative whose signature is the subject of a notarial act regarding a document of conveyance. It shall be in substantially the following form: NOTARIAL RECORD:
DEED TRANSFER
S. 812 3
I, ________________________(GRANTOR) HEREBY AUTHORIZE THE TRANSFER OF OWNERSHIP OF MY PROPERTY TO THE GRANTEE DESIGNATED BELOW. I UNDERSTAND I MAY BE TRANSFERRING OWNERSHIP OF MY HOME. Date Notarized: Fee: $ The undersigned grantor hereby certifies that the real property identified in this notarial record is residential real property as defined in section 135-c of the executive law. Grantor's (Signer's) Printed Name: Grantor's (Signer's) Signature: Grantor's (Signer's) Residential Street Address, City, State and Zip Code: Grantee's Relationship to Grantor: Grantee's (Signer's) Printed Name: Grantee's (Signer's) Signature: Grantee's (Signer's) Residential Street Address, City, State and Zip Code: Type or Name of Document of Conveyance: PIN No. of Residential Real Property: Common Street Address of Residential Real Property: Description of Means of Identification: Additional Comments: Name of Notary or Commissioner of Deeds Printed: Notary Phone Number: Commission or Appointment Expiration Date: Street Address of Notary, City, State and Zip Code: Name of Notary's Employer or Principal: Business Street Address of Notary's Employer or Principal, City, State and Zip Code:
5. Filing of the notarial record. The notary or commissioner of deeds shall file the notarial record in accordance with the procedures set forth in this subdivision.
a. Except as provided in paragraph b of this subdivision, the notarial record shall be delivered no later than fourteen days after it is created to the clerk or office of the register of the county or city within which the residential property that is the subject of the conveyance is located.
b. If the notarial record was created by a notary public in the scope of his or her work for a title insurance company, title insurance agent, financial institution, law firm or attorney at law, the notary public shall deliver the notarial record no later than fourteen days after it is created to such title insurance company, financial institution, law firm or attorney at law. Such title insurance company, financial institution, law firm or attorney at law, or any successor or assignee of such title insurance company, financial institution, law firm or attorney at law within the seven-year retention period, shall retain the notarial record and may disclose such record only as permitted under subdivision seven of this section.
6. The notarial record shall be retained for seven years in accordance with the procedures described in subdivision five of this section and with the confidentiality and disclosure provisions established in subdivision seven of this section. No copies of the original notarial record may be made or retained by the notary. The notary's employer or principal pursuant to paragraph b of subdivision five of this section, or a notary attorney acting within the scope of his or her employment may retain copies of the notarial records as business records, subject to
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applicable privacy and confidentiality standards outlined in subdivision seven of this section.
7. The notarial record shall not be disclosed nor shall its contents be made known except as provided in this subdivision.
a. A certified copy of a notarial record shall be provided to the United States or any department thereof, the state or any department thereof, and the city of New York or any department thereof, provided that such notarial record is required for official business.
b. A certified copy of a notarial record shall be provided in accordance with a judicial order.
c. Upon written request by the grantor or a legal representative of the grantor who is named in the notarial record.
8. Any person or entity violating the provisions of this section shall, in addition to all other penalties provided by law, be liable for a civil penalty of up to two hundred fifty dollars for each such violation. The secretary of state may assess such penalty following an adjudicatory proceeding conducted in accordance with the state administrative procedure act.
9. The failure of a notary or a commissioner of deeds to comply with the procedure set forth in this section shall not affect the validity of the residential real property transaction in connection to which the document of conveyance is executed, in the absence of fraud.
§ 2. Section 136 of the executive law is amended by adding a new subdivision 3 to read as follows:
3. For performing a notarial act related to a document of conveyance for which a notarial record is required pursuant to section one hundred thirty-five-c of this article, the notary or commissioner of deeds may charge a fee of twenty-five dollars in addition to any fees required to file the notarial record.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the executive law, in relation to the requirements for notaries public and commissioners of deeds relating to certain instru- ments affecting real property
Purpose of bill
The purpose of this bill is to prevent fraudulent deed transfers by increasing the accountability of notaries who place their seal on docu- ments of conveyance that transfer ownership of residential real proper- ty.
This bill establishes that notaries and commissioners of deeds whom are not employed by a title insurance agency, law firm or financial institu- tion, and who are involved in executing a document of conveyance, must file a notarial record of the notarial act. The bill provides a template of the notarial record, which includes, among other information, a description of the nature of the property, the names of the parties involved in the transfer, and the form of identification that was presented. The notary is required to file the notarial record with the County Clerk or the Recorder of Deeds.
Read the full memo (857 words)
Summary of specific provisions
Section 1: Adds a new section to the executive law that requires nota- ries to complete a notarial record when they are notarizing a document of conveyance. Subdivision 1 of the bill describes who the bill applies to- all notaries licensed:in New York and recorder of deeds. Subdivision 2 of the section defines what types of documents are included in the definition of a document of conveyance. Subdivisions 3 and 4 of the section describe exactly what information the notary is required to obtain from the individuals who are using the notary's seal on a docu- ment to transfer ownership of residential real property. Subdivision 5 establishes the requirement that notaries file the notarial record with the County Clerk or the Recorder of Deeds where the property is located within fourteen days of the record's completion. Notaries who are employed through a title insurance agency, law firm, financial institu- tion, or who are working as an attorney at law are required to keep the document as a business record as opposed to filing with the clerk. Subdivisions 6 and 7 discuss how such record is to remain confidential and only available in the limited circumstances of a government investi- gation, court order, or a request from the grant or named in the record. Subdivision 8 establishes that if a notary fails to comply with the bills provisions, the notary will be subject to a civil penalty of up to $250 dollars. Subdivision 9 affirms that a notary's failure to comply, however, will not invalidate the property transfer.
Section 2: Permits notaries to charge up to $25 dollars when notarizing a document of conveyance.
Section 3: Establishes that this act will take effect immediately.
Justification
Huge spikes in real estate values and lax standards for property trans- fers have left many homeowners vulnerable to deceptive practices by individuals and entities seeking to defraud homeowners out of their title to the home to make a profit. The two most common mechanisms of deed theft are through forged deeds and fraudulently transferred deeds. In the instances of a forged deed, the forger signs the document convey- ing real property as both the seller and buyer without any right to it.
This type of theft typically affects properties in which ownership has recently passed through inheritance and these deed scammers quickly file the forged deed, which legitimizes their title, and enables them to take possession of the premises. In the case of fraudulently transferred deeds, homeowners sign over their deeds, either knowingly or unknowing- ly, under the false pretenses proffered by scammers. These individuals target homes in or nearing foreclosure by approadhing the vulnerable homeowners with promises of refinancing, preventing foreclosure or some her financial relief, and some even manipulate the homeowners to do a short-sale, by which they promise to pay homeowners a sum of money to satisfy the outstanding mortgage in exchange for short term title to the property which they in turn promise to give back after the loan is repaid. Unwitting homeowners are often left without a home and still owing their mortgages.
This bill seeks to prevent both scenarios by requiring the notary who is present at the signing of the document of conveyance to fill out and file a notarial record. This record will indicate among other things the parties to the conveyance, the documents of identification that are presented to the notary, and the relationship the grantee and grantor have to one another. The rationale is that the creation of such a docu- ment will encourage the notary to be vigilant in identifying who the grantor and grantee are and the legitimacy of the transaction. Further more, the filing of the record will assist in the subsequent investi- gation and prosecution of fraudulent deed transfers by identifying any pattern of fraudulent actors.
Legislative history
2018: S.5756-A - Referred to Finance/A.62476-A- Third Reading Calendar 2017: S.5756-A - Referred to Finance/A.6246-A- Third Reading Calendar 2016: S.8058 - Referred to Rules / A.104252-A -Third Reading Calendar
Fiscal implications for state and local governments
None.
Effective date
The act takes effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.