Bill Text: NY A01569 | 2017-2018 | General Assembly | Introduced

New York Assembly Bill 1569 (Prior Session Legislation)

Introduced

Bill Title: Establishes a rebuttable presumption to the right to title of an incumbrancer in certain cases.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced - Dead) 2018-01-03 - ordered to third reading cal.120 [A01569 Detail]

Download: New_York-2017-A01569-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________
                                          1569
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    January 12, 2017
                                       ___________
        Introduced by M. of A. MOSLEY, WEINSTEIN, LENTOL, BARRON, COOK, HYNDMAN,
          TITUS, WALKER -- Multi-Sponsored by -- M. of A. NOLAN -- read once and
          referred to the Committee on Judiciary
        AN  ACT  to  amend the real property law, in relation to rebuttal of the
          right of an incumbrancer
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. Section 266 of the real property law is amended to read as
     2  follows:
     3    § 266. Rights of purchaser or incumbrancer for valuable  consideration
     4  protected.    This  article  does not in any manner affect or impair the
     5  title of a purchaser  or  incumbrancer  for  a  valuable  consideration,
     6  unless  it  appears that he had previous notice of the fraudulent intent
     7  of his immediate grantor, or of the fraud rendering void  the  title  of
     8  such grantor.  There shall be a rebuttable presumption that this section
     9  shall  not  apply  in the case of a transfer of mortgaged real property,
    10  between a purchaser and seller who are not associated parties,  that  is
    11  not  accompanied  by  the recording with the clerk of the county or with
    12  the commissioner of deeds in which the property is located, of a  state-
    13  ment,  executed  by  the  mortgagee,  and  duly  acknowledged,  stating,
    14  substantially, that (1) a party is assuming  the  seller's  indebtedness
    15  secured  by  the  mortgage;  or (2) that the indebtedness secured by the
    16  mortgage has been satisfied.
    17    For the purposes of this section, "associated parties" means  spouses,
    18  ex-spouses,  parents  and children, siblings, a homeowner and that home-
    19  owner's family trust, or a homeowner and that  homeowner's  wholly-owned
    20  limited liability company.
    21    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04039-01-7