New York State has enacted legislation criminalizing deed theft, effective July 19, 2024. This new law introduces changes that may affect real estate transactions and practices. Here's an overview of the key points

Main Features of the New Law

Criminal Classification

 Deed theft is now a felony offense, ranging from Class D to Class B, depending on property value and circumstances.

Extended Prosecution Window

Cases can be brought within five years of the theft or two years after discovery by the rightful owner, whichever is later.

Broadened Prosecution Authority

 The Attorney General's office now shares jurisdiction with district attorneys to prosecute deed theft cases statewide.

Potential Industry Impacts

Increased focus on document verification in property transactions

Greater scrutiny of property transfers, especially in areas deemed high-risk for fraud

Possible changes in how property ownership records are maintained and accessed

The law aims to protect vulnerable homeowners, particularly in gentrifying neighborhoods and among elderly populations.

Industry Response

Real estate associations and legal experts are analyzing the law's implications. Some anticipate:

Updates to transaction protocols

Enhanced emphasis on secure document handling

Increased collaboration between real estate professionals and legal counsel

This legislation builds on civil reforms passed in 2023, which expanded homeowner protections under the Homeowner Equity Theft Prevention Act (HEPTA).

Protective Measures

Real estate professionals should advise clients who suspect deed theft to contact the Attorney General's office at 1(800) 771-7755 or email deedtheft@ag.ny.gov for immediate assistance.