New York State Strengthens Homeowner Protections with New Deed Theft Law

On July 19, 2024, new legislation passed that provides homeowners with additional deed theft protections.  

What is Deed Theft? 
Deed theft occurs when a property’s title or deed is transferred without the homeowner’s knowledge or consent. This crime disproportionately targets elderly individuals, communities of color, and neighborhoods where property values are rapidly changing. 

What protections against deed theft were already in place?  
The new legislation builds on civil protections passed last year, which permits prosecutors to flag properties with suspected deed theft, removes legal protections from buyers who may commit deed theft, and allows homeowners to stop eviction proceedings when deed theft is in question. The reform also expanded the Homeowner Equity Theft Prevention Act (HEPTA), giving homeowners with active utility liens the right to cancel contracts to sell their property. 

Key Updates in the New Law: 

• Criminalization of Deed Theft: Deed theft is now classified as grand larceny, with penalties based on the severity: 

• First Degree Grand Larceny (Class B Felony): Applies to theft from elderly, disabled, or incapacitated person, or the theft of three or more residential properties. 

• Second Degree Grand Larceny (Class C Felony): Covers the theft of one residential property, a mixed-use commercial property with a residential unit, or two or more commercial properties. 

• Third Degree Grand Larceny (Class D Felony): Pertains to the theft of a single commercial property. 

• Extended Statute of Limitations: Legal action can now be initiated within five years of the theft or two years after the homeowner discovers the crime, whichever is later. 

• Expanded Authority for the Attorney General’s Office (OAG): The OAG now has original criminal jurisdiction to prosecute deed theft cases alongside district attorneys statewide. 

With these new provisions, New York State is strengthening homeowner protections, equipping law enforcement with enhanced tools to combat deed theft and deterring scammers from targeting vulnerable properties. 

 NEED LEGAL HELP?  

The City Bar Justice Center’s Homeowner Stability Project (HSP) provides legal assistance to New York City homeowners of low to moderate income threatened with the loss of their 1-4 family homes, coops and condos, including through mortgage foreclosure, payment arrears, transferring title when a family member passes, scams and other predatory practices. 

hsp@nycbar.org 

212-382-6766 

https://www.citybarjusticecenter.org/projects/homeowner-stability-project/ 

This communication is for the general education and knowledge of our readers. Because all legal problems involve their own specific set of facts, this informational resource is not and should not be used as a substitute for independent legal advice. This informational resource also is not intended to create, and its receipt does not constitute, an attorney-client relationship. Please contact competent, independent legal counsel for an assessment of your particular legal concerns or contact us (using the information above) to determine whether you qualify for assistance from the City Bar Justice Center.