Real Property Law Section Blog

Selected laws affecting real property enacted so far in 2008:

A251/S5621 Lender prohibited from exercising due on sale clauses for homes - Chap 152
A1269/S1531 Sex offender prohibited from license as r.e. broker or salesman - Chap 430
A7007A/S3825 Appointment of Art 7-A administrator is basis to declare mortgage due or certify dwelling abandoned - Chap 529
A7519/S4874 Requires seller to establish escrow for broker's commission - Chap 436 [RPLS memo in support]
A7700/S4963A Residential assessment ratio - Chap 78
A10766/S7645 Extends tax rate reduction on REITS - Chap 416
A10817/S8143 Governor's Program Bill on mortgage foreclosure - Chap 472 [RPLS memo in support if amended]
A10952/S5634 Requires notification of tenants of testing for indoor air contamination - Chap 521
A11544/S8517 Requires notice re certified copy of deed - Chap 485
A11574/S7915C Clarifies adverse possession - Chap 268 [RPLS memo in opposition to final bill]

Bills not enacted:


A1743 NYSLTA bill to license title agents - did not pass [RPLS memo in support]
A3994 Applications to purchase coops - did not pass
A8948 Disclosure of LLC members - passed Assembly only [RPLS memo in opposition]
A9295 County Clerk discretion re mortgages (anti-MERS) - did not pass [RPLS memo in opposition]
A9491 Nassau County Clerk discretion re mortgages (anti-MERS) - did not pass [RPLS memo in opposition]
A11424 Revise PCDA - did not pass [RPLS memo in support]

To find copies of bills, go to:

1. RPLS portion of NYSBA website: www.nysba.org, then "Sections", then "Real Property Law Section", then "Status of Pending Legislation" (search by bill number, click on number) (For RPLS memoranda go to "2007-2008 Legislative Memoranda") or go to
2. Senate website: www.senate.state.ny.us, then "Bills and Laws" or go to
3. Assembly website: www.assembly.state.ny.us, then "Bill Search and Legislative information".

Karl B. Holtzschue, Co-Chair, RPLS Committee on Legislation
email: kbholt@gmail.com

Memoranda drafted by members of the Real Property Section's Legislative Committee on Bills under consideration in the New York State Legislature are posted to the www.nysba.org at the following address:

http://www.nysba.org/AM/Template.cfm?Section=Legislative_Memoranda_2009_20101&TEMPLATE=/CM/ContentDisplay.cfm&CONTENTID=25717

The NYC Department of Finance has posted the following to its web site at http://nyc.gov/html/dof/html/business/business_tax_gct.shtml#dissolution

Dissolution Requirement

Under Section 1003 of the Business Corporation Law, as of October 1, 2009, Tax Clearance must be obtained from the NYC Department of Finance (Finance) when dissolving corporations that have done business in and incurred tax liability to the City of New York. Corporations must complete the Request For Dissolution and mail to Finance. Finance will send a Dissolution Consent to the address provided on the Request. The Dissolution Consent must be attached to Certificates of Dissolution that are filed with the New York State Secretary of State.

http://nyc.gov/html/dof/html/pdf/legal/request_dissolution.pdf

Request For Dissolution

If you are filing a Request for Dissolution on behalf of a corporation, you will need to obtain and submit a signed and dated Power of Attorney with your request.

Power of Attorney For Businesses

http://nyc.gov/html/dof/html/pdf/poa/poa1.pdf

Originating Dept: Meetings

Description: To publicize legislation signed by the Governor

Target Group: Real Property Law Section

Subject: LEGISLATIVE ALERT- NEW RESIDENTIAL MORTGAGE
FORECLOSURE LEGISLATION SIGNED INTO LAW

Message:

Enactment of
New Mortgage Foreclosure Legislation

The New York State Legislature has passed and Governor Patterson has signed Program Bill No. 46 to significantly expand the scope of the mortgage foreclosure legislation enacted in 2008 that pertained to subprime loans.

Also known as S66007/and A40007, the legislation, which takes effect immediately, makes many important changes in the law and, most importantly, expands the use of early mandatory settlement conferences to include all home loans.

Attached is a copy of the Bill, the Sponsors’ Memorandum and the Governor’s message. Here are some of the major points covered by the legislation:

• Expands the 90-day pre-foreclosure notice currently sent for subprime loans to include all home loans, including loans on cooperative apartments.

• Requires lenders who serve a 90-day notice on a homeowner to make, within three days of that service, a regulatory filing with the Banking Department with specified information to allow the Banking Department and the Division of Housing and Community Renewal to provide targeted assistance to distressed homeowners during the pre-foreclosure period and closely monitor foreclosure statistics

• Expands the scope of early mandatory settlement conferences to include borrowers of all home loans and not just borrowers with subprime loans and requires both plaintiffs and defendants to negotiate in good faith to reach a mutually agreeable resolution, including a loan modification, if possible

• Establishes protections for tenants in foreclosed properties by requiring that they receive written notification of the foreclosure action and the change in ownership of the property, and be permitted to remain in their home for the remainder of their lease term or 90 days, whichever is longer, provided that such lease requires the payment of rent that is not substantially less than fair market rent

• Requires plaintiffs in a foreclosure action who obtain a judgment of foreclosure and sale to maintain the foreclosed property so that it does not pose a blight or nuisance, or create a blighting influence on neighboring properties -- if the property is occupied by a tenant, the plaintiff must also maintain the property in a safe and habitable condition

• Prevents brokers who perform distressed property consulting services from accepting upfront fees

• Permits the court to award reasonable attorneys’ fees to a prevailing borrower in a foreclosure action

This is a brief summary of the major points covered by the legislation and many of you will want to read the entire Bill.

To view/download the Governor’s Message, the bill and memorandum, go to http://www.nysba.org/RPLSLegislation

State of New York | Executive Chamber
David A. Paterson | Governor

Selected laws affecting real property enacted in 2009:

A1132/S2350 Excludes non-business days from notice of eviction. Chapter 256

A1569/S2967 Incentives for construction of schools/condos in mixed const. Chap 234

A2002/S2493 Amend civil penalties for violation of admin orders re tenants. Chap 480

A2089/S3337 Establish conservation easements. Chap 296

A2369/S800 Subcontractor’s right to file claim. Chap 224

A2500/S2461 AG to compel compliance with GOL re money in trust. Chap 225

A4392/S1728 Delay effective date of POA to 9/1/09. Chap 4

A5753/S5551 “Mortgage” to include second lien if purchased by U.S. agency. Chap 432

A6017/S3847 Court to describe stipulation in summary proceeding. Chap 281

A6093/S2791A/Requires all residences to have CO detector. Chap 367

A6924/S3725 Regulation of mortgage loan originators. Chap 123

A7247/S2871 New owners for which administrator appointed. Chap 265

A8305/S2760 Reverse mortgage fairness act. Chap 259

A40007/S66007 Home mortgage loans, crime of mortgage fraud. Chap 507

Selected bills not enacted in 2009:

A1364/S4672 Revises Property Condition Disclosure Act [RPLS memo in support]
A1643/S41 Makes practising law without admission a Class-E felony [RPLS memo in support]
A3553/S5497 Requires applications for coops to be acted on in 45 days
A4300/S5445 Actions for UPL to include criminal as well as civil actions [RPLS memo in support]
A5362/S1933 Provides for recordation of modification of illegal restrictive covenants [+ several other bills] [RPLS memo in opposition]
A6086/S5815 Provides for licensing of title agents (NYSLTA bill) [RPLS memo in opposition]
A7127/S3550 Provides for licensing of title agents (NYSID bill) [RPLS memo in opposition unless amended]
A8404 Requires disclosure of title insurance service charges (RPLS bill) [RPLS memo in support]

To find copies of Bills, go to:

1. RPLS portion of NYSBA website: www.nysba.org, then "Sections," then "Real Property Law Section," then "Status of Pending Legislation" (search by bill number) (for RPLS memoranda go to "2008-2009 and 2009-2010 Legislative Memoranda") or go to

2. Senate website: www.senate.state.ny.us, then "Bill and Laws" or go to

3. Assembly website: www.assembly.state.ny.us, then "Bill Search and Legislative Information."

Karl B. Holtzschue, Co-Chairperson
Real Property Law Section, Committee on Legislation