New York Attorney General Letitia James reminded New Yorkers of a new law establishing deed theft as a crime and expanding the Office of the Attorney General’s (OAG) ability to prosecute deed theft, which went into effect July 19.
Under previous state law , deed theft itself was not a crime. This law amended penal law to make deed theft a form of grand larceny, extended the statute of limitations to allow for more time to identify and investigate cases, and granted OAG the original criminal jurisdiction to prosecute deed theft crimes alongside district attorneys statewide.
The new law:
- Established deed theft as a crime: Under this new law, deed theft is now legally considered grand larceny, and can be prosecuted as such.
- Grand larceny in the first degree, a class B felony applies to deed theft of a residential real property that is occupied as a home by at least one person and is a home that is owned by someone who is elderly, incapacitated, or physically disabled, or deed theft of three or more residential real properties, regardless of monetary value.
- Grand larceny in the second degree, a class C felony applies to deed theft of one residential property, one commercial mixed-use property with at least one residential unit, or two or more commercial properties, regardless of monetary value.
- Grand larceny in the third degree, a class D felony applies to deed theft of one commercial real property, regardless of monetary value.
- Extend the statute of limitations: This new law changes the statute of limitations to prosecute deed theft crimes so that prosecution must begin within five years of the theft or within two years after the rightful homeowner realizes their deed has been stolen, whichever occurs later.
- Grant OAG original criminal jurisdiction: This new law grants OAG concurrent original jurisdiction to prosecute deed theft crimes alongside district attorneys throughout the state.
Last year, the state legislature passed James’ legislation reforming New York’s civil laws to give New Yorkers more tools to protect their homes and stop deed theft. Previously, there were very few legal remedies available to homeowners and prosecutors once a scammer had obtained the deed to someone’s home. Under the new law, prosecutors can now file a legal action on properties where deed theft has taken place or is suspected, which acts as a “red flag” warning banks and insurance companies of potential scams and voiding good faith purchaser protections.
The law also makes it possible to keep New Yorkers in their homes and stay an eviction proceeding in housing court when the rightful homeowner can show evidence that there is a potential deed theft in progress. The law also expanded the protections of the Homeowner Equity Theft Prevention Act to allow homeowners with active utility liens the opportunity to cancel any contract to sell their property.