Judiciary committee advances bill aimed at preventing fraudulent deed transfers; members press for clarity on criminal liability

The Senate Standing Committee on Judiciary considered Senate print 3737, sponsored by Senator Sanders, a bill to amend the Real Property Law and the Banking Law to prevent fraudulent deed transfers. Committee members advanced the bill to the Codes Committee but asked the sponsor and staff to clarify how the bill would assign criminal liability for fraudulent filings.

Committee members identified two technical points they said required clarification before the bill moves further. One member noted uncertainty over whether the bill would change the statutory requirements for deeds — specifically whether a deed must be “acknowledged” under the Real Property Law rather than merely notarized — and asked whether the bill alters that standard. The member asked, "I had some concerns regarding this bill ... who exactly would be charged with an E-felony?" and sought confirmation whether the liability could fall to recording officers, county clerks, or the staff who accept documents for filing.

Members also raised concerns about electronic filing. Several senators asked how the bill would apply when a deed is uploaded through ACRIS, the county electronic recording system, where a filer need not physically deliver the paper deed. Committee counsel said staff would "follow up with the sponsor to ensure the best practice is possible," and the chair committed to obtaining the requested clarifications for the committee.

A motion to move the bill off the agenda was made and seconded; the motion carried and the committee reported the measure to the Codes Committee for further consideration. The committee did not adopt language changes on the floor of the Judiciary Committee; members requested formal clarification from the sponsor and staff before additional committee action.

The next steps are (1) the sponsor and committee counsel to provide written clarifications about which actors the bill would render criminally liable and how the bill treats acknowledgments and notarial requirements, and (2) consideration of the bill by the Codes Committee once the Judiciary Committee record is complete.