On November 14, 2023, Governor Hochul enacted A06656, amending Section 756-a of New York State's Real Property Actions and Proceedings Law. This amendment is designed to safeguard real property owners from the threat of not resolving claims of potential deed theft fast enough while an eviction or foreclosure is pending.
This amendment permits a stay of any proceeding to recover possession of or resoling title disputes concerning residential properties when there are underlying issues of deed theft or title disputes. This provision applies specifically when there is a pending good faith investigation into the theft or fraud in the title to, or the financing of, the premises that is the subject of any proceeding for eviction or foreclosure.
This measure will serve as a safeguard, mitigating the risk of homeowners who may, unknowingly, lose their residences.
If an individual is convicted of a criminal offense related to deed theft or fraudulent transactions involving real property, this conviction gives rise to a rebuttable presumption of fraud in the deed transfer, so filing charges needs to be part of a strategic litigation strategy moving forward. In fact, if you file, the District Attorney or Attorney General is then entitled to seek the nullification of the deed transfer. The implicated individual must establish by a preponderance of the evidence that the deed was not procured through fraudulent means.
This amendment goes into effect December 14, 2023.
