Bill Text: NY S00551 | 2017-2018 | General Assembly | Introduced

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Bill Title: Establishes requirements for purchase agreements for residential real property by which the buyer must maintain the property while full payment is outstanding.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2018-01-03 - REFERRED TO JUDICIARY [S00551 Detail]

Download: New_York-2017-S00551-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                           551
                               2017-2018 Regular Sessions
                    IN SENATE
                                       (Prefiled)
                                     January 4, 2017
                                       ___________
        Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Judiciary
        AN ACT to amend the real  property  law,  in  relation  to  establishing
          requirements for land contracts
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The real property law is amended by adding  a  new  section
     2  246-a to read as follows:
     3    §  246-a.  Requirements  for  land  contracts.  1. Definition. For the
     4  purposes of this section, "land contract" means  any  written  agreement
     5  executed  between  a  buyer and seller of residential real property or a
     6  parcel of real property for residential use,  by  installment  payments,
     7  with  a  deposit  of  one thousand dollars or more, and a term of ninety
     8  days or more, pursuant to  which  such  buyer  is  responsible  for  all
     9  repairs  upon  the  real  property and will be granted title to the real
    10  property upon the full payment of the stated purchase price.  Such  term
    11  shall  not  include a mortgage pursuant to which the seller executes and
    12  records a deed to the real  property  upon  the  buyer's  execution  and
    13  recording  of  a  mortgage  upon  the real property; nor shall such term
    14  include a lease of real property pursuant to which the lessor  is  obli-
    15  gated  to  make  repairs and pay real property taxes upon such  property
    16  until the lessee tenders the stated purchase price.
    17    2. Disclosure notice. Not less than ten days prior to the execution of
    18  a land contract, the seller shall provide to the buyer a written  notice
    19  delivered  by  certified  mail.  Such  notice  shall  be  entitled "Land
    20  Contract-Consumer Caution and Counseling Notice" and shall  include  the
    21  following notices:
    22    (a)  "You  can lose this property if you fail to make the payments and
    23  meet the other requirements of the land contract.";
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06201-01-7
        S. 551                              2
     1    (b) "You can lose this property if the seller of this  property  loses
     2  title to this property due to the foreclosure of an existing mortgage or
     3  other  lien,  or  other  legal  actions which may be brought against the
     4  seller by creditors or others.";
     5    (c) "You can lose this property if other persons have a legal interest
     6  or claim against the property.";
     7    (d)  "Under the terms of this contract you are responsible for repairs
     8  to this property and therefore you should have the  property  adequately
     9  inspected before entering into this contract.";
    10    (e)  The  name  and  addresses  of the holders of any mortgages on the
    11  property whose consent is required before the property can be sold;
    12    (f) The existence of any mortgages or liens of record on the property;
    13  and
    14    (g) The unpaid property taxes or assessments on such property, if any.
    15    3. Mandatory provisions. Every land contract shall provide:
    16    (a) that if the seller is to provide the buyer with  escrow  payments,
    17  the  seller  must  maintain  the  escrow funds in a separate account and
    18  provide the buyer with an annualized accounting and proof of taxes paid;
    19    (b) that if the seller does not record the land contract  within  five
    20  days  of  the  execution  of such contract, the buyer shall be granted a
    21  right of recovery against the seller for all  payments  made  under  the
    22  land contract;
    23    (c)  that  the  buyer  must be provided with a copy of the receipt for
    24  filing the land contract with the county clerk; and
    25    (d) that the seller must provide the buyer with written  receipts  for
    26  any payments made under the land contract, including down payments.
    27    4.   Recording  requirement.  Within  five  business  days  after  the
    28  execution of a land contract, such contract shall  be  recorded  by  the
    29  seller  in  the  county  clerk's  office in the county in which the real
    30  property is located. The seller shall provide the buyer with a  copy  of
    31  the receipt issued for such recording.
    32    5. Prohibited terms. No land contract shall contain the following:
    33    (a) a provision which imposes excessive late fees;
    34    (b) a provision in which the buyer consents to his or her removal from
    35  the contract by the buyer without the option of judicial intervention or
    36  a  provision  in  which  the  buyer  automatically  consents  to summary
    37  proceedings by the seller;
    38    (c) a provision in which the buyer forfeits equity  in  the  event  of
    39  default; or
    40    (d) a provision which waives any of the provisions of this section.
    41    6.  Enforcement.  The  attorney  general may commence an action in the
    42  name of the people of the state of New York to enforce the terms of this
    43  section. A court may grant injunctive, declaratory  or  other  equitable
    44  relief  in  any  such  action  brought to enforce the provisions of this
    45  section.
    46    § 2. This act shall take effect on the one hundred twentieth day after
    47  it shall have become a law.