New York Assembly Bill A08863

New York 2025-2026 Regular Session

• Introduced: 6/9/25
• Refer: 6/9/25

Caption

Establishes a private right of action for deed theft; provides that victims of deed theft may maintain an action against a deed thief or a bank or title insurance corporation that provides a loan or title insurance policy that assists in the commission of deed theft; authorizes victims of deed theft to recover treble damages and attorneys' fees; defines terms.

Impact

The implementation of A08863 would significantly alter existing laws related to real property and homeowners’ rights in New York. By permitting victims to sue directly for damages against those who commit deed theft, including banks and title insurance companies that may inadvertently facilitate these crimes, it seeks to provide an avenue for recovery and justice for affected property owners. This act represents a broader effort to protect property rights and deter fraudulent activities in real estate transactions.

Summary

Assembly Bill A08863, commonly known as the 'Deed Theft: Private Right of Action Act', aims to establish a legal framework that allows victims of deed theft to initiate civil proceedings. Deed theft is defined within the bill as the act of unlawfully transferring or encumbering ownership of real property through fraudulent means without the owner's consent. The bill outlines specific actions that could qualify as deed theft and establishes the terms for a private right of action against individuals and entities involved in such unlawful acts.

Contention

The proposed bill has sparked discussions regarding the balance between consumer protection and the potential burden it may impose on financial institutions. Proponents argue that it will empower property owners and incentivize banks and title insurance companies to enforce stricter due diligence protocols to prevent fraud. However, some industry representatives may express concerns about the implications of increased liability and the risk of financial institutions being held accountable for acts of fraud they did not directly commit.