Image credit: New York City Council.
Deceitful real estate practices are on the rise in New York City, so a proposed local law aims to protect property owners against the growing threat of deed fraud, which disproportionately impacts vulnerable populations such as residents of underprivileged neighborhoods and the elderly. On October 10, 2024, Council Member Nantasha Williams introduced Int. 1086, a bill mandating timely notifications of deed changes, thus empowering property owners to proactively protect their assets and fostering a more secure real estate landscape.
This bill requires the New York City Department of Finance to notify property owners within thirty days of any changes to their property deeds, including ownership transfers and title changes. The department will deliver timely and reliable notifications by every means of contact available, including email, text message, and postal mail. Each notification provides homeowners with the specific details needed to quickly identify any unauthorized transactions, allowing owners to identify unauthorized transactions before they suffer further harm.
Furthermore, the bill ensures that existing property owners will receive notification of this local law and that the city will automatically register future deed-related and mortgage-related documents with the property owners’ name. Additionally, the department will report annually on the notification system’s performance on its website. These proactive measures are crucial for vulnerable residents and homeowners because it enables them to take preventative actions, stopping deed fraud attempts before they are carried out.
Deed fraud occurs when an individual illegally alters or transfers property ownership without the consent of the legitimate owner. Perpetrators often employ deceptive tactics such as forging signatures on deed documents, using stolen personal information, or manipulating official records to create unauthorized transfers. The consequences for victims can be devastating, ranging from significant financial losses to protracted legal battles to reclaim their property. By empowering homeowners with the information and tools to identify and address fraudulent activity, this legislation protects against financial loss and fosters greater confidence and security in property ownership.
CityLand reached out to Council Member Nantasha Williams regarding the bill but did not receive a comment. The bill was assigned to the Committee on Finance.
By: James Bedell (James is a New York Law School student, Class of 2025.)