New York 2025-2026 Regular Session

New York Senate Bill S07721

Introduced
5/1/25  

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

This bill introduces new definitions related to 'deed theft' and outlines the criteria under which affected parties can pursue legal claims. Deed theft is defined as transferring or encumbering title to a property without the owner's consent, often involving fraudulent actions such as forgery or misrepresentation. By establishing a private right of action, the bill empowers victims to recover damages, including treble (triple) damages and attorney’s fees, thereby incentivizing the enforcement of property rights and deterring potential future violations.

Summary

Bill S07721, titled the 'Deed Theft: Private Right of Action Act', aims to provide victims of deed theft with a legal mechanism to seek justice. The legislation enables individuals or entities adversely affected by acts of deed theft to file a private right of action against the perpetrators and banks or title insurance corporations complicit in facilitating the theft. This marks a significant shift in New York law by explicitly allowing property owners to hold accountable not only the thieves who commit these acts but also financial institutions that may inadvertently support such behavior through negligence.

Conclusion

Ultimately, S07721 represents a proactive approach to tackling the issue of deed theft in New York, reflecting a growing recognition of the need for robust protections for property owners. Its successful passage could signify a paradigm shift in how property-related fraud cases are handled within the judicial system, encouraging more victims to seek recourse while simultaneously raising awareness of the legal dimensions of real estate transactions.

Contention

Notably, the bill may spark debate among stakeholders regarding the implications of holding banks and insurance companies liable for actions they did not commit directly. Critics may argue that imposing liability on these institutions could lead to increased costs and tighter lending practices, potentially exacerbating the challenges faced by prospective homeowners. Advocates for the bill, however, emphasize the need for accountability in the housing sector, especially given the rising incidents of property fraud and the significant impact such crimes have on vulnerable homeowners.

Companion Bills

NY A08863

Same As 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.

Previously Filed As

NY S06569

Relates to the theft of real property; defines certain larceny crimes as involving deed theft; authorizes the attorney general to investigate and prosecute every person or entity charged with the commission of a criminal offense in violation or transactions relating to deed theft or a transaction involving real property.

NY A09763

Relates to the theft of real property; defines certain larceny crimes as involving deed theft; authorizes the attorney general to investigate and prosecute every person or entity charged with the commission of a criminal offense in violation or transactions relating to deed theft or a transaction involving real property.

NY A06656

Relates to the theft of real property; provides certain protections for victims of real property theft; authorizes a stay of foreclosure proceedings pending an investigation into theft or fraud.

NY S06577

Relates to the theft of real property; provides certain protections for victims of real property theft; authorizes a stay of foreclosure proceedings pending an investigation into theft or fraud.

NY A02948

Provides certain relief for persons who are victims of identity theft; provides for destruction or sealing of certain police and court records and for issuance of an identity theft passport.

NY S09708

Provides that the theft of property of an essential service provider shall constitute grand larceny; provides a higher degree of crime where such theft results in a substantial interruption or impairment of service.

NY S07539

Provides grounds for attachment; relates to procedures where employees may hold shareholders of non-publicly traded corporations personally liable for wage theft; relates to rights for victims of wage theft to hold the ten members with the largest ownership interests in a company personally liable for wage theft; relates to penalties for certain wage violations.

NY A07752

Provides grounds for attachment; relates to procedures where employees may hold shareholders of non-publicly traded corporations personally liable for wage theft; relates to rights for victims of wage theft to hold the ten members with the largest ownership interests in a company personally liable for wage theft; relates to penalties for certain wage violations.

NY S02376

Adds medical and health insurance information within the definitions of identity theft.

NY A04737

Adds medical and health insurance information within the definitions of identity theft.

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