Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H1689 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	HOUSE DOCKET, NO. 3897 FILED ON: 1/20/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 1689
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Frank A. Moran
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act protecting titles to real estate in Massachusetts.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Frank A. Moran17th Essex1/20/2023Angelo J. Puppolo, Jr.12th Hampden2/2/2023Estela A. Reyes4th Essex2/8/2023Natalie M. Higgins4th Worcester2/23/2023 1 of 17
16	16	HOUSE DOCKET, NO. 3897 FILED ON: 1/20/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 1689
18	18	By Representative Moran of Lawrence, a petition (accompanied by bill, House, No. 1689) of
19	19	Frank A. Moran and others relative to protecting titles to real estate. The Judiciary.
20	20	The Commonwealth of Massachusetts
21	21	_______________
22	22	In the One Hundred and Ninety-Third General Court
23	23	(2023-2024)
24	24	_______________
25	25	An Act protecting titles to real estate in Massachusetts.
26	26	Whereas, The deferred operation of this act would tend to defeat its purpose, which is to
27	27	reverse the impact of structural racism in the illegal lending and taking of title to property and
28	28	myriad associated damages and to end the lengthy delay of justice that thus far has meant justice
29	29	denied.
30	30	Whereas, the deferred operation of this act would tend to defeat its purpose,  which is like
31	31	that of the first true Massachusetts recording act, “For avoiding all fraudulent conveyances, and
32	32	that every man may know what estate or other interest other men may have in any houses, lands,
33	33	or other hereditaments they are to deal in….” 1 Mass. Colonial Records 306 (1640); including to
34	34	facilitate the accurate determination of title to real estate in the commonwealth; to enable every
35	35	homeowner with a mortgage on real property to know at all times who holds the mortgage and
36	36	who owns the mortgage note; to enable municipalities to know who is liable for real estate taxes
37	37	and other charges pertaining to properties; to provide certain foreclosure-related criminal
38	38	provisions, and to re-establish the settled meanings of certain terms defined herein, therefore it is
39	39	hereby declared to be an emergency law, necessary for the immediate preservation of the public
40	40	convenience.
41	41	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
42	42	of the same, as follows:
43	43	1 SECTION 1. (a) This Act may be cited as the “real estate title protection act.”
44	44	2 (b) Where not explicitly specified, this Act shall be construed to apply to both registered
45	45	3and recorded land. 2 of 17
46	46	4 (c) Where a provision of this Act conflicts with any other provision of the General Laws
47	47	5or the deed indexing standards, this Act shall supersede that other provision or those standards.
48	48	6 SECTION 2. For the purposes of this Act, the following terms shall have the following
49	49	7meanings:
50	50	8 “Affidavit”, a document made on personal knowledge or that meets the requirements of
51	51	9the business records exception to the rule against hearsay, Rule 803(6), Federal and
52	52	10Massachusetts Rules of Evidence, “Records of a Regularly Conducted Activity.” It shall set forth
53	53	11such facts as would be admissible in evidence, and shall show affirmatively that the affiant is
54	54	12competent to testify to the matters stated therein. If it relies on the business records exception,
55	55	13the affidavit shall have attached to it sworn or certified copies of all documents or relevant
56	56	14excerpts thereof to which the affidavit refers. Each such excerpt must be in the form of a true and
57	57	15accurate photocopy of the entirety of the page or pages from which such an excerpt is taken, and
58	58	16must include complete and accurate photocopies of the document’s title page and table of
59	59	17contents, if applicable. Each complete page from which any such excerpt or part thereof is taken
60	60	18shall bear already-existing indicia evidencing that said page is from the document whose title
61	61	19page and table of contents, if applicable, are appended, or else shall bear already-existing indicia
62	62	20evidencing the source of each such page.
63	63	21 “Assignment of mortgage”, an instrument by which a mortgagee or holder of a mortgage
64	64	22of real property conveys such a mortgage deed to an assignee pursuant to the Statute of Frauds,
65	65	23section 1 of chapter 259 of the General Laws; section 6 of chapter 183; and other provisions of
66	66	24the General Laws applicable to a transfer of interest in real property. 3 of 17
67	67	25 “Authorized person”, a person authorized to act on behalf of another person as of the date
68	68	26of execution of an instrument that can affect title to real property, signed by the person on whose
69	69	27behalf the person authorized thereby is acting.
70	70	28 “Deed indexing standards”, standards for indexing documents to be recorded in the
71	71	29registries of deeds, as issued by the Massachusetts Registers and Assistant Registers of Deeds
72	72	30Association and revised from time to time.
73	73	31 “Discharge”, a duly executed and acknowledged deed of release of a mortgage of real
74	74	32property or other instrument that, by its terms, discharges or releases such a mortgage, or
75	75	33acknowledges payment or satisfaction of the debt or obligation secured by such a mortgage or
76	76	34the conditions contained therein; or the discharge of such a mortgage by operation of law
77	77	35pursuant to the General Laws, including section 33 of Chapter 260.
78	78	36 “Lender”, the entity(ies) who provided the funds for the mortgage directly, loan through a
79	79	37line of credit, or by any other means, except if the person is Federal National Mortgage
80	80	38Association, Federal Home Loan Mortgage Corp. or Gevernment National Mortgage
81	81	39Association.
82	82	40 “Mortgage” or “Mortgage Deed”, a conveyance, to a lender, of legal title to real property,
83	83	41in consideration of a loan whose repayment is secured by the terms and conditions of a security
84	84	42instrument.
85	85	43 “Mortgagee” or “mortgage holder”, a person who has invested funds or other
86	86	44consideration to hold legal title to real property upon which a mortgage is granted, and who is
87	87	45named as such in the mortgage or any assignment thereof. 4 of 17
88	88	46 “Mortgagee of Record”, a “mortgagee” or “mortgage holder” so identified in an
89	89	47instrument that thereafter was recorded.
90	90	48 “Mortgage servicer” or “servicer", the person legally authorized by the mortgagee and in
91	91	49compliance with all applicable law for servicing the mortgage loan.
92	92	50 “Mortgage servicing” or “servicing”, the receiving of any scheduled periodic payments
93	93	51from a mortgagor pursuant to the terms of any mortgage loan, the making of the payments of
94	94	52principal and interest and such other payments with respect to the amounts received from the
95	95	53mortgagor as may be required pursuant to the terms of such loan, and the provision of a written
96	96	54payoff statement with respect to the mortgage loan pursuant to section 54D of chapter 184.
97	97	55 “Mortgage statement”, a periodic statement that a mortgagee of residential real property
98	98	56or its authorized mortgage servicer sends to a mortgagor, stating the amount of the mortgage
99	99	57payment then due; the loan balance; the names and contact information, including an address and
100	100	58toll-free telephone number, for the current (i) mortgagee, with the date as of which it became the
101	101	59mortgagee; (ii) note owner, with the date as of which it became the note owner, and (iii)
102	102	60mortgage servicer, if any, with the date as of which it became the servicer.
103	103	61 “Mortgagor”, a grantor of a mortgage originated in compliance with existing regulatory
104	104	62interpretation.
105	105	63 “Mortgage Note”, a promissory note, bearing the original signature of the mortgagor,
106	106	64promising to pay the lender, or any successor who is entitled to enforce the mortgage note, and
107	107	65specifying the requirements for the repayment of the debt including the amount, interest and
108	108	66charges. 5 of 17
109	109	67 “Note Owner”, the lender or a transferee of the note, who is entitled to receive payments
110	110	68under and to enforce the note.
111	111	69 “Register”, the register of deeds for the county or district within which the subject land
112	112	70lies.
113	113	71 “Residential real property”, a 1 to 6 family residential property located in the
114	114	72commonwealth.
115	115	73 SECTION 3. Attorney General to notify registers of deeds of legal developments
116	116	74 Chapter 12 of General Laws is hereby amended by adding the following section:-
117	117	75 Section 34. At the end of each session of the general court, and whenever otherwise
118	118	76appropriate, the Attorney General shall promptly notify the registers of statutes, regulations, and
119	119	77decisions of courts that may affect their responsibilities or operations.
120	120	78 SECTION 4A. Recordation of assignments of mortgage, affidavits of sale, foreclosure
121	121	79deeds
122	122	80 Section 12A of chapter 36 of General Laws is hereby amended by adding the following
123	123	81ten subsections:-
124	124	82 (a) A register shall not record any instrument, executed after the effective date of this act,
125	125	83unless its heading (i) is in 12 point (pica) or larger bolded font, (ii) indicates the type of
126	126	84instrument, and (iii) briefly indicates the instrument’s purpose or contents.
127	127	85 (b) A register shall not record any assignment of mortgage that is presented later than
128	128	86thirty (30) days after its date of execution, unless the said assignment of mortgage is recorded 6 of 17
129	129	87with an affidavit showing good cause for filing late, or with a certified copy of an order of a
130	130	88court finding that recordation after this thirty (30) day limit is warranted in the interests of
131	131	89justice.
132	132	90 (c) A register shall not record an assignment of mortgage executed before the effective
133	133	91date of this Act, but not recorded as of that date, unless presented to the appropriate registry of
134	134	92deeds within ninety (90) days of this Act’s effective date, except that the Federal National
135	135	93Mortgage Association, the Federal Home Loan Mortgage Corporation, the Government National
136	136	94Mortgage Association, the U.S. Department of Housing and Human Development, and the U.S.
137	137	95Department of Agriculture may present such assignments of mortgage for recording up to one
138	138	96hundred eighty (180) days from the effective date of this Act.
139	139	97 (d) Where an assignment of a mortgage or other instrument of conveyance is to a
140	140	98securitized trust or other investment vehicle, a certified copy of that trust or other investment
141	141	99vehicle’s founding instrument must be:
142	142	100 Recorded with the assignment of mortgage, or other instrument of conveyance
143	143	101 identified on the assignment by book and page or document number in the subject
144	144	102registry
145	145	103 (e) A register shall not record a discharge of a mortgage of real property unless it is:
146	146	104 (i) issued by the mortgagee and identifies the present note owner, and
147	147	105 (ii) recorded, with a certified copy of the original wet-ink mortgage note in its present
148	148	106condition, demonstrating that all allonges are affixed, and marked “paid in full,” with the date of
149	149	107satisfaction of the mortgage loan. 7 of 17
150	150	108 (f) A register shall record an affidavit of sale pursuant to section 14 of chapter 244, only
151	151	109if it is recorded with (i) a certified copy of the notice to mortgagor of right to cure default of
152	152	110mortgage pursuant to section 35A of chapter 244, and (ii) a certified copy of the original wet-ink
153	153	111mortgage note in its present condition, demonstrating that all allonges are affixed.
154	154	112 (g) A register shall not record a foreclosure deed if it is presented more than sixty (60)
155	155	113days after the date of foreclosure, unless it is recorded with an affidavit on personal knowledge
156	156	114showing good cause for filing late, or by a certified copy of an order of a court finding that
157	157	115recordation after this sixty (60) day limit is warranted in the interests of justice.
158	158	116 (h) A register shall not record any foreclosure deed relative to a foreclosure occurring
159	159	117before the effective date of this Act, unless it is presented for recording to the appropriate
160	160	118registry of deeds within ninety (90) days of this Act’s effective date.
161	161	119 (i) The Division of Banks shall promptly inform all persons licensed in the
162	162	120commonwealth to lend funds upon mortgages, as well as the Federal National Mortgage
163	163	121Association, the Federal Home Loan Mortgage Corporation, the Government National Mortgage
164	164	122Association, the U.S. Department of Housing and Human Development, and the U.S.
165	165	123Department of Agriculture, of the provisions of this Act.
166	166	124 SECTION 4B: Conformance of Notary provisions with Alienation of Land provisions:
167	167	125 Section 8 of Chapter 222 of the General Laws, as appearing in the 2016 Official Edition,
168	168	126is hereby amended by striking out of subsection (b) the sentence “Failure to comply with this
169	169	127section shall not affect the validity of any instrument or the record thereof” and replacing it with
170	170	128“Failure to comply with this section shall not affect the validity of any instrument”. 8 of 17
171	171	129 Section 20 of Chapter 222 of the General Laws, is hereby amended by striking out
172	172	130subsection (b) in its entirety and replacing it with
173	173	131 “(b) Except as may be required by the Office of the Secretary of the Commonwealth for
174	174	132the issuance of an apostille, or as may be required by a register of deeds for the purpose of
175	175	133recordation or registration, and provided the form of acknowledgement, jurat, signature
176	176	134witnessing, or copy certification otherwise is substantially similar in legal meaning and effect to
177	177	135the texts of the several such forms set forth in this chapter or in the appendix to Chapter 183:
178	178	136 (i)  failure of a document to contain the forms of acknowledgment, jurat, signature
179	179	137witnessing or copy certification set forth in section 15 or otherwise to comply with the
180	180	138requirements set forth in sections 8 to 23, inclusive, shall not have any effect on the validity of
181	181	139the underlying document;
182	182	140 (ii) failure of a document to contain the forms of acknowledgement, jurat, signature
183	183	141witnessing or copy certification set forth in said section 15 shall not be the basis of a refusal to
184	184	142accept the document for filing, or acceptance by a third party; and
185	185	143 (iii) failure of a document executed in a representative capacity to contain an
186	186	144acknowledgement that the instrument was also the voluntary or free act and deed of the principal
187	187	145or guarantor shall not affect the validity of the underlying document.”
188	188	146 SECTION 5. Homeowners’ mortgage statements
189	189	147 Chapter 183 of General Laws, as appearing in the 2014 Official Edition, is hereby
190	190	148amended by inserting after section 54D the following section:- 9 of 17
191	191	149 “Mortgage statement”, a periodic statement that a mortgagee of residential real property
192	192	150or its authorized mortgage servicer sends to a mortgagor, stating the amount of the mortgage
193	193	151payment then due; the loan balance; the names and contact information, including an address and
194	194	152toll-free telephone number, for the current (i) mortgagee, with the date as of which it became the
195	195	153mortgagee; (ii) note owner, with the date as of which it became the note owner, and (iii)
196	196	154mortgage servicer, if any, with the date as of which it became the servicer.
197	197	155 Section 54E. (a) Each mortgage statement concerning a mortgage of residential real
198	198	156property shall provide the names and contact information, including an address and toll-free
199	199	157telephone number, for the current (i) mortgagee, with the date as of which it became the
200	200	158mortgagee; (ii) note owner, with the date as of which it became the note owner, and (iii)
201	201	159mortgage servicer, if any, with the date as of which it became the servicer.
202	202	160 (b) Each such mortgage statement shall identify the mortgage servicer, if any, as “the
203	203	161company that you pay,” or shall use other language sufficient to indicate the function(s) that a
204	204	162mortgage servicer performs.
205	205	163 (c) All information on each such mortgage statement shall be accurate and current as of
206	206	164the date on which the statement is transmitted.
207	207	165 (d) Failure to comply with this section shall be an unfair or deceptive practice under
208	208	166section two of chapter 93A, and shall render a mortgagee or mortgage servicer liable to the
209	209	167mortgagor in the amount of $2,500 for each such violation, plus damages and reasonable
210	210	168attorney’s fees under subsection four of section nine of said chapter 93A. 10 of 17
211	211	169 (e) The amount of $2,500 for each violation of subsection (d) shall annually, on January
212	212	1701, be adjusted in accordance with the consumer price index as defined in section one of the
213	213	171Internal Revenue Code.
214	214	172 SECTION 6. Payoff of mortgage loan: return cancelled note to mortgagor
215	215	173 Section 55 of chapter 183 of General Laws is hereby amended by adding at the end
216	216	174thereof the following three subsections:-
217	217	175 (l) When the mortgage loan has been paid in full, the note owner shall, within twenty (20)
218	218	176days of such payment, cause to be sent to the mortgagor the original wet-ink note in its present
219	219	177condition with all allonges affixed, and marked “Paid in Full,” with the date of satisfaction of the
220	220	178mortgage loan.
221	221	179 (m) Failure to comply with this section shall be an unfair or deceptive practice under
222	222	180section 2 of chapter 93A, and shall render a mortgagee or mortgage servicer liable to the
223	223	181mortgagor in the amount of $2,500 for each such violation, plus damages and reasonable
224	224	182attorney’s fees under subsection (4) of section 9 of said chapter 93A.
225	225	183 (n) The amount of $2,500 for each violation of subsection (m) shall annually, on January
226	226	1841, be adjusted in accordance with the consumer price index as defined in section one of the
227	227	185Internal Revenue Code.
228	228	186 SECTION 7. Repeal of foreclosure by entry and possession.
229	229	187 Section 70 of chapter 185 of the General Laws, as appearing in the 2014 Official Edition,
230	230	188is hereby amended by striking out the words “; but in case of foreclosure by entry and
231	231	189possession, the certificate of entry required by section 2 of chapter 244 shall be filed and 11 of 17
232	232	190registered by an assistant recorder in lieu of recording.” and by striking out the words “After
233	233	191possession has been obtained by the mortgagee or his assigns, by entry or by action, and has
234	234	192continued for the time required by law to complete the foreclosure, he or his assigns may request
235	235	193the land court for the entry of a new certificate, and the court, after notice to all parties in
236	236	194interest, shall have jurisdiction to hear the case, and may order the entry of a new certificate on
237	237	195such terms as equity and justice may require.”
238	238	196 The provisions of Section 1 of chapter 244 of the General Laws, as so appearing, are
239	239	197hereby declared in effect until the date of the enactment of this Act.
240	240	198 “Section 1. A mortgagee may, after breach of condition of a mortgage of land, recover
241	241	199possession of the land mortgaged by an open and peaceable entry thereon, if not opposed by the
242	242	200mortgagor or other person claiming it, or by action under this chapter; and possession so
243	243	201obtained, if continued peaceably for three years from the date of recording of the memorandum
244	244	202or certificate as provided in section two, shall forever foreclose the right of redemption.
245	245	203 After the date of the enactment of this Act, the following shall be in effect:
246	246	204 “Section 1. A mortgagee may, after breach of condition of a mortgage of land, recover
247	247	205possession of the land mortgaged by action under this chapter.”
248	248	206 Said chapter 244 of General Laws is hereby further amended by striking out section 2 and
249	249	207inserting in place thereof the following section:-
250	250	208 Section 2. Possession obtained by means of any entry under previous section 1 of Chapter
251	251	209244, or under section 70 of chapter 185, as to which a memorandum or certificate was recorded 12 of 17
252	252	210fewer than three years before the effective date of this act, shall never foreclose the right of
253	253	211redemption.
254	254	212 Section 8 of said chapter 244, as so appearing, is hereby amended by striking out the first
255	255	213sentence and inserting in place thereof the following sentence:- “The action may be brought by
256	256	214an assignee of the mortgagee”
257	257	215 Sections 9 and 10 of chapter 244 are hereby repealed.
258	258	216 SECTION 8. Notice to municipality by mortgagee taking possession, conveying title
259	259	217 Section 15A of said Chapter 244 is hereby amended by making existing text into
260	260	218subsection 15A(a) and adding the following four paragraphs:-
261	261	219 (b) The assessor or collector of taxes shall accept such a notice only if accompanied by (i)
262	262	220a certification, on personal knowledge and under the pains and penalties of perjury, that the
263	263	221mortgagee has caused to be made all other notifications required by this section and (ii) a fine of
264	264	222$100 per day for each day beyond the day by which the mortgagee was required to have made
265	265	223such notice to the municipality.
266	266	224 (c) The assessor or collector of taxes shall retain one-half of each such fine for the
267	267	225municipality. He or she shall promptly forward one-half of each such fine as revenue to the
268	268	226treasurer of the county, if the municipality is located in a county, or if not, to the treasurer of the
269	269	227commonwealth, as revenue for deposit in the general fund.
270	270	228 (d) If a mortgagee has taken possession of a property on or before the effective date of
271	271	229this act, but has not made the notifications required by section 15A of chapter 244, this fine shall
272	272	230become applicable as of thirty (30) days after the effective date of this act. 13 of 17
273	273	231 (e) The Commissioner of the Department of Revenue of the commonwealth shall
274	274	232promptly notify all municipalities in the commonwealth of the provisions of Section 12.
275	275	233 SECTION 9. Repeal legislative determination of weight of evidence
276	276	234 Section 35B (f) and section 35C (b) of said chapter 244, as so appearing, are hereby
277	277	235amended by striking out the word “conclusive” where it appears in the second paragraph of
278	278	236section 35B (f), between “this section shall be” and “evidence in favor of”, and in the second
279	279	237paragraph of Section 35C(b), where it appears between “this subsection shall be” and “evidence
280	280	238in favor of….”
281	281	239 SECTION 10. Creditor actions; mortgagee’s affidavit; assignments of mortgage; service
282	282	240members’ civil relief act proceedings
283	283	241 Said section 35C of said chapter 244, as so appearing, is hereby further amended in
284	284	242subsection (a), by striking out the words “Mortgage Electronic Registration System or”; and in
285	285	243subsection (b), by striking out the words “Prior to publishing a notice of a foreclosure sale, as
286	286	244required by section 14” and replacing them with “Prior to instituting a proceeding in land court
287	287	245or superior court pursuant to the service members’ civil relief act and again prior to publishing a
288	288	246notice of foreclosure sale as required by section 14 ,”
289	289	247 Said section 35C of said chapter 244, as so appearing, is hereby further amended by
290	290	248adding the following four subsections:-
291	291	249 (i) For each certified copy of a document appended to the affidavit required in subsection
292	292	250(b), the affidavit shall provide the name and contact information of the document custodian of 14 of 17
293	293	251the original document, or shall identify the document by book and page or document number as
294	294	252recorded in the registry of deeds for the county or district in which the land lies.
295	295	253 (j) Land court and superior court shall proceed with have jurisdiction in a service
296	296	254members’ civil relief case only (1) upon the filing of a mortgagee’s affidavit as required in
297	297	255subsection (b); (2) if all assignments of mortgage cited in and appended to that affidavit, whether
298	298	256original or certified copies, have been duly recorded in the registry of deeds for the county or
299	299	257district within which the land lies; and (3), where the note owner is different from the mortgagee,
300	300	258the mortgagee has filed a certified copy of the agency agreement or other instrument authorizing
301	301	259the mortgagee to institute that proceeding.
302	302	260 (k) Failure to comply with this section shall be an unfair or deceptive practice under
303	303	261section 2 of chapter 93A, and shall render a mortgagee or mortgage servicer liable to the
304	304	262mortgagor in the amount of $2,500 for each such violation, plus damages and reasonable
305	305	263attorney’s fees under subsection (4) of section 9 of said chapter 93A.
306	306	264 (l) The amount of $2,500 for each violation of subsection (e) shall annually, on January 1,
307	307	265be adjusted in accordance with the consumer price index as defined in section 1 of the Internal
308	308	266Revenue Code.
309	309	267 SECTION 11. False material statements or omissions during or in connection with
310	310	268mortgage loan process; penalties; statute of limitations; Attorney General reports
311	311	269 Section 35A of chapter 266 of General Laws is hereby amended, in subsection (a) by
312	312	270deleting “4” in the definition of “Residential mortgage loan” and substituting “6”; and, in both its
313	313	271title and in subsection (b), by deleting the word “lending” wherever it appears and substituting 15 of 17
314	314	272the word “loan”; and is further amended in subsection (b), after “both such fine and
315	315	273imprisonment”, by inserting the following new paragraph:-
316	316	274 Where a document including such a material statement that is false or such a material
317	317	275omission is used in connection with a foreclosure or attempted foreclosure, or a larceny or
318	318	276attempted larceny of real property whether such document is filed in a court, recorded in a
319	319	277registry of deeds, or otherwise uttered, punishment may include restitution to the victim(s),
320	320	278including the preparation and recordation at no expense to the victim(s) of whatever
321	321	279instrument(s) might be necessary to clarify the title of the victim(s) to that property; a prohibition
322	322	280from doing business in the commonwealth for any term of years or permanently; or both.
323	323	281 Said section 35A of said chapter 266, as so appearing, is hereby further amended by
324	324	282inserting, after subsection (b), the following seven new subsections:
325	325	283 (c) Whoever executes or causes to be executed, or files or causes to be filed with any
326	326	284court, or presents or causes to be presented to a registry of deeds for recording or registration,
327	327	285whether in hard copy or by means of electronic transmission, or otherwise utters any instrument
328	328	286that affects title to real property, whether residential or commercial, knowing that it is fraudulent
329	329	287or false in any material respect including by omission, by a false or fraudulent declaration, by a
330	330	288false or fraudulent signature, or by a false or fraudulent notarization, shall be punished by
331	331	289imprisonment in the state prison for not more than 5 years or by imprisonment in the house of
332	332	290correction for not more than 2 and one-half years or by a fine of not more than $50,000 in the
333	333	291case of a natural person or not more than $250,000 in the case of any other person, or by both
334	334	292fine and imprisonment. Where such a document is used in connection with a foreclosure or
335	335	293attempted foreclosure, or a larceny or attempted larceny of real property, punishment may 16 of 17
336	336	294include restitution to the victim(s), including the preparation and recordation at no expense to the
337	337	295victim(s) of whatever instrument(s) might be necessary to clarify the title of the victim(s) to that
338	338	296property; a prohibition from doing business in the commonwealth for any term of years or
339	339	297permanently; or both.
340	340	298 (d) The statute of limitations for a violation of subsection (c) of this section shall be ten
341	341	299(10) years from the date of execution of the document in question, the date of its presentation to
342	342	300a registry of deeds for recording, its date of recordation, or the date on which it was filed with or
343	343	301proferred in evidence in any court or otherwise uttered, whichever comes last.
344	344	302 (e) The provisions of subsections (c) and (d) of said section 35A of said chapter 266, as
345	345	303so appearing, shall be reproduced in 12-point (pica) bolded font, with a heading, “Criminal
346	346	304Liability for False or Fraudulent Documents,” in least 16-point bolded font, and shall be
347	347	305displayed prominently in the public area of each registry of deeds. These provisions shall also be
348	348	306reproduced legibly, with a legible heading in bolded font, on the website of each registry of
349	349	307deeds, and, as a condition of doing business in the commonwealth, on the website of any firm
350	350	308that offers e-recording services in the commonwealth.
351	351	309 (f) The Secretary of the Commonwealth shall promptly notify all firms that offer e-
352	352	310recording services in the commonwealth of the provisions of subsections (a), (b), (c), (d) and (e).
353	353	311 (g) The Attorney General shall make available to all registers, to land court, superior
354	354	312court, members of the Massachusetts bar, and on the Attorney General’s website, referral forms
355	355	313for reporting violations of section 35A , of section 30 of chapter 2606 of the General Laws, and
356	356	314of any other violations of the General Laws that concern title to real property, together with
357	357	315instructions for completing and submitting such forms to the Attorney General’s office. 17 of 17
358	358	316 (h) The Attorney General may refer such cases for investigation and prosecution to the
359	359	317district attorney for the county or district in which a case arises.
360	360	318 (i) The Attorney General shall report to the legislature annually, within thirty (30) days of
361	361	319the end of each fiscal year, on (1) the number of referrals received during the preceding fiscal
362	362	320year for violations identified in (g) and the violations alleged; (2) the number and types of cases
363	363	321in which civil enforcement actions or criminal charges have been brought, whether by the
364	364	322Attorney General’s office or by a district attorney; and (3) the status and disposition of each such
365	365	323case, including sentences of restitution to victim(s) of foreclosure and attempted foreclosure and
366	366	324larceny and attempted larceny of real property and of prohibition from doing business in the
367	367	325commonwealth.
368	368	326 (j) The maximum amounts of all fines for violations of section 35A shall be adjusted
369	369	327annually on January 1 in accordance with the consumer price index as defined in section one of
370	370	328the Internal Revenue Code.
371	371	329 SECTION 12: Chapter 266 Section 30 subsection 5 is amended by striking out ”,60 years
372	372	330of age or older, or of a person with a disability as defined in section 13K of chapter 265,”