New York State’s new law aimed at combating deed theft and protecting the property rights of residents came into effect on July 19. The law now classifies deed theft as a serious crime, allowing prosecutors to press charges and extending the statute of limitations.
Deed theft refers to the fraudulent acquisition of property ownership or titles through forgery or deceit, without the knowledge or authorization of the homeowner. Over the past decade, New York City has seen thousands of cases of deed theft, with elderly and minority homeowners being particularly vulnerable. For example, in Queens, a criminal syndicate that used forged documents to steal properties from elderly widows managed to sell three houses without the lawful homeowners’ knowledge, profiting unlawfully over $1 million. The ringleader of the syndicate, Marcus Wilcher, was sentenced by the court last week.
Under the previous laws in New York, stealing a deed itself was not considered a crime, and the penalties for related offenses were not severe. However, once a property’s ownership or deed is fraudulently obtained, homeowners and prosecutors have had limited legal recourse. Thus, at the urging of the State Attorney General Letitia James, the state legislature amended the criminal and civil codes, which were signed by Governor Hochul in November last year and officially took effect on July 19 this year.
According to the new law, deed theft is now classified as a serious felony and is separated into three levels:
– First-degree grand larceny, Class B felony: Stealing residential properties owned by the elderly, incapacitated, or disabled individuals, or stealing three or more residential properties.
– Second-degree grand larceny, Class C felony: Stealing one or more residential properties or mixed-use properties, or two or more commercial properties.
– Third-degree grand larceny, Class D felony: Stealing one or more commercial real estate properties.
The statute of limitations has been extended accordingly. Prosecutions can be initiated within five years of the theft occurring or within two years of the rightful property owner discovering the theft – the later of the two dates prevails.
The new law also grants the State Attorney General and district attorneys statewide jurisdiction to prosecute deed theft crimes. Prosecutors can also file civil lawsuits concerning the stolen properties, temporarily halt related auctions or evictions by banks and insurance companies, and request the court to declare invalid any property transfers or loans due to fraud. Legitimate homeowners whose properties have been stolen can remain in their homes during the period when eviction proceedings are suspended.
Letitia James reminds the public that if they suspect they are victims of deed theft, they can contact the State Attorney General’s office by calling the hotline at 1-800-771-7755, sending an email to [email protected], or submitting a complaint online via the link https://tinyurl.com/24k3fckt.
New York State also offers the Homeowner Protection Program, providing free housing counseling and legal assistance to homeowners. Homeowners can call 1-855-466-3456 or visit the website https://homeownerhelpny.org/ for assistance.