Bill Text: NY S05688 | 2023-2024 | General Assembly | Amended


Bill Title: Requires notaries public and commissioners of deeds to complete and retain certain documents relating to the transfer of residential real property; relates to forgery and offering a false document concerning residential real property.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2024-05-28 - referred to codes [S05688 Detail]

Download: New_York-2023-S05688-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         5688--A

                               2023-2024 Regular Sessions

                    IN SENATE

                                     March 13, 2023
                                       ___________

        Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
          printed to be committed to  the  Committee  on  Finance  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        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; and to amend the penal law, in relation
          to forgery and the offering of false documents concerning  residential
          real property

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The executive law is amended by adding a new section  135-d
     2  to read as follows:
     3    §  135-d.  Requirements  of notaries public and commissioners of deeds
     4  related to certain instruments affecting real property.  1. This section
     5  shall apply to every notarial act in the state involving a  document  of
     6  conveyance  that transfers or purports to transfer title with respect to
     7  residential real property located in the state. It shall also  apply  to
     8  commissioners  of  deeds appointed pursuant to section one hundred forty
     9  of this article.
    10    2. As used in this section, the following terms shall have the follow-
    11  ing meanings:
    12    a. "document of conveyance" shall mean a  deed,  indenture,  or  other
    13  written  instrument that transfers or purports to transfer title effect-
    14  ing a change in ownership to residential  real  property,  or  otherwise
    15  presented to evidence the conveyance of real property ownership from one
    16  party to another excluding:
    17    (i) court ordered transfer or otherwise effected change of residential
    18  real property including but not limited to  a  transfer  between  spous-
    19  es  or former  spouses  as  a  result  of  a  decree of divorce, dissol-
    20  ution of marriage, annulment, or legal separation, or as  a  result   of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00998-05-3

        S. 5688--A                          2

     1  property  settlement  related  thereto,    or  agreement incidental to a
     2  decree of divorce, dissolution of marriage, annulment,  or  legal  sepa-
     3  ration;
     4    (ii)  a transfer order by a probate court during the administration of
     5  a decedent's estate;
     6    (iii) a court ordered voiding of an instrument affecting real  proper-
     7  ty;
     8    (iv)  a transfer of property to a trust in which the beneficiary is or
     9  includes the grantor; and
    10    (v) a deed from a grantor to himself or herself that  is  intended  to
    11  change the nature or type of tenancy by which he or she owns residential
    12  real property.
    13    b.  "financial  institution" shall mean a bank, trust company, savings
    14  institution, or credit union, chartered and supervised  under  state  or
    15  federal law.
    16    c.  "notarial  record"  shall  mean  the  written  document created in
    17  conformity with the requirements of this section.
    18    d. "residential real property" shall  mean  a  building  or  buildings
    19  consisting of one to four dwelling units where the square footage of the
    20  residential  portion  exceeds  the  square  footage  of  any  commercial
    21  portion.
    22    e. "signatory" shall mean the person or  persons  whose  signature  is
    23  being acknowledged by a notary public or commissioner of deeds.
    24    3. A notary appointed and commissioned as a notary in this state and a
    25  commissioner  of  deeds  shall create a notarial record of each notarial
    26  act performed in connection with a document of conveyance. The  notarial
    27  record shall contain:
    28    a. the date of the notarial act;
    29    b.  the type, title or description of the document of conveyance being
    30  notarized, the block and lot number used  to  identify  the  residential
    31  real property for assessment or taxation purposes, and the common street
    32  address  for  the  residential  real property that is the subject of the
    33  document of conveyance;
    34    c. the signature, printed name and residence street  address  of  each
    35  person whose signature is the subject of the notarial act, and a certif-
    36  ication  by the person that the property is residential real property as
    37  defined in this section;
    38    d. a description of the satisfactory evidence reviewed by  the  notary
    39  or  the  commissioner  of  deeds to determine the identity of the person
    40  whose signature  is  the  subject  of  the  notarial  act.  Satisfactory
    41  evidence  shall  include  presentation of any one of the following docu-
    42  ments identifying the signatory or signatories:
    43    (i) a valid driver's license or non-driver identification card  issued
    44  by  the  commissioner  of  motor  vehicles,  the federal government, any
    45  United States territory, Commonwealth or  possession,  the  District  of
    46  Columbia, or a state government within the United States;
    47    (ii) a valid passport issued by the United States government;
    48    (iii) a valid passport issued by a foreign government; or
    49    (iv)  a valid municipal identification card issued pursuant to section
    50  3-115 of the administrative code of the city of New York; and
    51    e. the date of notarization, the fee charged for the notarial act, the
    52  notary's home or business phone number, the notary's business  or  resi-
    53  dence  street  address,  the  notary's commission expiration date or the
    54  commissioner of deeds appointment expiration  date,  the  correct  legal
    55  name  of  the  notary's  employer  or principal, and the business street
    56  address of the notary's employer or principal.

        S. 5688--A                          3

     1    4. The notarial  record  required  under  subdivision  three  of  this
     2  section  shall  be  created  and maintained for each person or represen-
     3  tative whose signature is the subject of  a  notarial  act  regarding  a
     4  document of conveyance. It shall be in substantially the following form:
     5  NOTARIAL RECORD:
     6                                DEED TRANSFER
     7  I,  ________________________(GRANTOR)  HEREBY  AUTHORIZE THE TRANSFER OF
     8  OWNERSHIP OF MY PROPERTY TO THE GRANTEE DESIGNATED BELOW. I UNDERSTAND I
     9  MAY BE TRANSFERRING OWNERSHIP OF MY HOME.
    10  Date Notarized:
    11  Fee: $
    12  The undersigned grantor hereby certifies that the real property  identi-
    13  fied  in this notarial record is residential real property as defined in
    14  section 135-d of the executive law.
    15  Grantor's (Signer's) Printed Name:
    16  Grantor's (Signer's) Signature:
    17  Grantor's (Signer's) Residential Street Address,  City,  State  and  Zip
    18  Code:
    19  Grantee's Relationship to Grantor:
    20  Grantee's (Signer's) Printed Name:
    21  Grantee's (Signer's) Signature:
    22  Grantee's  (Signer's)  Residential  Street  Address, City, State and Zip
    23  Code:
    24  Type or Name of Document of Conveyance:
    25  PIN No. of Residential Real Property:
    26  Common Street Address of Residential Real Property:
    27  Description of Means of Identification:
    28  Additional Comments:
    29  Name of Notary or Commissioner of Deeds Printed:
    30  Notary Phone Number:
    31  Commission or Appointment Expiration Date:
    32  Street Address of Notary, City, State and Zip Code:
    33  Name of Notary's Employer or Principal:
    34  Business Street Address of Notary's Employer or Principal,  City,  State
    35  and Zip Code:
    36    5.  Filing of the notarial record. The notary or commissioner of deeds
    37  shall file the notarial record in accordance  with  the  procedures  set
    38  forth in this subdivision.
    39    a.  The notarial record shall be delivered no later than fourteen days
    40  after it is created to the clerk or office of the register of the county
    41  or city within which the residential property that is the subject of the
    42  conveyance is located.
    43    b. If the notarial record was created by a notary public in the  scope
    44  of his or her work for a title insurance company, title insurance agent,
    45  financial  institution,  law  firm or attorney at law, the notary public
    46  shall deliver the notarial record no later than fourteen days  after  it
    47  is  created  to such title insurance company, financial institution, law
    48  firm or attorney at law.  Such title insurance company, financial insti-
    49  tution, law firm or attorney at law, or any  successor  or  assignee  of
    50  such  title insurance company, financial institution, law firm or attor-
    51  ney at law within the seven-year retention period.
    52    6. The notarial record shall be retained for ten years  in  accordance
    53  with  the  procedures described in subdivision five of this section.  No
    54  copies of the original notarial record may be made or  retained  by  the
    55  notary.  The  notary's  employer or principal pursuant to paragraph b of
    56  subdivision five of this section, or a notary attorney acting within the

        S. 5688--A                          4

     1  scope of his or her employment may retain copies of the notarial records
     2  as business records.
     3    7.  Any  person  or  entity  violating  the provisions of this section
     4  shall, in addition to all other penalties provided by law,  be  required
     5  to  file  an official bond in the amount of twenty-five thousand dollars
     6  for a first offense and fifty thousand dollars for a subsequent offense.
     7  The secretary of state shall assess such penalty following an  adjudica-
     8  tory  proceeding  conducted  in accordance with the state administrative
     9  procedure act.
    10    8. The failure of a notary or a commissioner of deeds to  comply  with
    11  the procedure set forth in this section shall not affect the validity of
    12  the  residential  real  property  transaction in connection to which the
    13  document of conveyance is executed, in the absence of fraud and forgery.
    14    § 2. Section 136 of the executive law  is  amended  by  adding  a  new
    15  subdivision 4 to read as follows:
    16    4.  For  performing a notarial act related to a document of conveyance
    17  for which a notarial record is required pursuant to section one  hundred
    18  thirty-five-d  of  this article, the notary or commissioner of deeds may
    19  charge a fee of twenty-five dollars in addition to any fees required  to
    20  file the notarial record.
    21    §  3.  Section  170.10  of  the penal law, subdivision 1 as amended by
    22  chapter 949 of the laws of 1984, is amended to read as follows:
    23  § 170.10 Forgery in the second degree.
    24    A person is guilty of forgery in the second  degree  when  he  or  she
    25  forges an owner's signature on a document purporting to be a document of
    26  conveyance  under false pretenses or, with intent to defraud, deceive or
    27  injure another, he or she falsely makes, completes or alters  a  written
    28  instrument  which is or purports to be, or which is calculated to become
    29  or to represent if completed:
    30    1. A [deed,] document of conveyance, will, codicil, contract,  assign-
    31  ment,  commercial  instrument,  credit  card, as that term is defined in
    32  subdivision seven of section 155.00 of this chapter, or other instrument
    33  which does or may evidence, create,  transfer,  terminate  or  otherwise
    34  affect a legal right, interest, obligation or status; or
    35    2.  A  public record, or an instrument filed or required or authorized
    36  by law to be filed in or with a public office or public servant; or
    37    3. A written instrument officially  issued  or  created  by  a  public
    38  office, public servant or governmental instrumentality; or
    39    4.  Part  of  an  issue  of  tokens,  public transportation transfers,
    40  certificates or other articles manufactured  and  designed  for  use  as
    41  symbols  of  value usable in place of money for the purchase of property
    42  or services; or
    43    5. A prescription of a duly licensed physician or other person author-
    44  ized to issue the same for any drug or any instrument or device used  in
    45  the  taking  or  administering  of  drugs  for  which  a prescription is
    46  required by law.
    47    Forgery in the second degree is a class D felony.
    48    § 4. Section 170.15 of the penal law is amended to read as follows:
    49  § 170.15 Forgery in the first degree.
    50    A person is guilty of forgery in the first degree when, with intent to
    51  defraud, deceive or injure another, he or she falsely  makes,  completes
    52  or  alters  a written instrument which is or purports to be, or which is
    53  calculated to become or to represent if completed:
    54    1. Part of an issue of money, stamps,  securities  or  other  valuable
    55  instruments issued by a government or governmental instrumentality; [or]

        S. 5688--A                          5

     1    2.  Part of an issue of stock, bonds or other instruments representing
     2  interests in or claims against a corporate or other organization or  its
     3  property; or
     4    3.  Part of a deed or a part of any type of a deed or other instrument
     5  that transfers or otherwise affects residential real property, including
     6  a mortgage, an assignment of mortgage, a  satisfaction  of  mortgage,  a
     7  contract of sale, and any document that is required for recording a deed
     8  with a governmental agency.
     9    Forgery in the first degree is a class C felony.
    10    §  5.  The  penal law is amended by adding two new sections 175.31 and
    11  175.32 to read as follows:
    12  § 175.31 Offering a false instrument for filing in  the  second  degree;
    13             real property.
    14    A  person is   guilty of offering a false instrument for filing in the
    15  second degree; real property when, knowing  that  a  written  instrument
    16  contains  a false statement  or  false  information concerning a deed or
    17  a  part  of  any  type  of  a deed or other instrument that transfers or
    18  otherwise affects residential real property, including  a  mortgage,  an
    19  assignment  of mortgage, a satisfaction of mortgage, a contract of sale,
    20  and any document that is required for recording a deed  with  a  govern-
    21  mental  agency,    he or she offers or presents it to a public office or
    22  public servant with the knowledge or belief that   it   will   be  filed
    23  with,  registered  or  recorded  in  or  otherwise  become a part of the
    24  records of such public office or public servant.
    25    Offering a false instrument for filing  in  the  second  degree;  real
    26  property is a class E felony.
    27  § 175.32 Offering  a  false  instrument  for filing in the first degree;
    28             real property.
    29    A  person  is  guilty of offering a false instrument for filing in the
    30  first degree; real property when:
    31    1. knowing that a written instrument contains  a  false  statement  or
    32  false  information  concerning a deed or a part of any type of a deed or
    33  other instrument that transfers or otherwise  affects  residential  real
    34  property,  including  a mortgage, an assignment of mortgage, a satisfac-
    35  tion of mortgage, a contract of sale, and any document that is  required
    36  for  recording  a  deed  with  a governmental agency, and with intent to
    37  defraud the state or any political subdivision,  public   authority   or
    38  public  benefit  corporation of the state, he or she offers or  presents
    39  it  to a   public   office,   public servant,   public   authority    or
    40  public  benefit  corporation  with  the knowledge or belief that it will
    41  be filed with, registered  or  recorded in   or   otherwise   become   a
    42  part  of  the  records  of  such  public  office, public servant, public
    43  authority or public benefit corporation.
    44    Offering a false instrument for filing in the first degree; real prop-
    45  erty is a  class D felony.
    46    § 6. This act shall take effect immediately.
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