Attorney General James Announces New Protections Against Deed Theft

July 19, 2024

NEW YORK - New York Attorney General Letitia James reminded New Yorkers that a new law establishing deed theft as a crime and expanding the Office of the Attorney General's (OAG) ability to prosecute deed theft goes into effect today. The legislation, which was co-authored by Attorney General James and sponsored by State Senator Zellnor Myrie and Assemblymember Landon C. Dais, establishes deed theft as a crime, amends the statute of limitations to give homeowners and prosecutors more time to seek justice, and grants OAG original criminal jurisdiction to prosecute deed theft. This is Attorney General James' latest effort to protect New Yorkers from deed theft, a criminal scam that robs New York families of their homes and livelihoods. Last year, Attorney General James championed legislation sponsored by State Senator Brian Kavanagh and Assemblymember Helene Weinstein to enhance civil deed theft protections by empowering the Attorney General and local district attorneys to pause related eviction and ownership dispute proceedings and expand the list of crimes that allow prosecutors to invalidate fraudulent sale and loan documents, among other measures. That law went into effect in December 2023.

New Yorkers who believe they are a victim of deed theft are encouraged to contact OAG by calling 1(800) 771-7755, emailing [email protected], or filing a confidential complaint.

"Deed theft is a merciless crime that robs New Yorkers of their homes, communities, and financial stability," said Attorney General James. "By making deed theft the crime we know it to be, this law gives my office and district attorneys more power to stop these scammers from taking advantage of hardworking people. I thank State Senator Myrie and Assemblymember Dais for cosponsoring this legislation. These critical reforms will help us keep New York families where they belong: in their homes."

"When the Senate held our hearing on deed theft in 2022, we heard in detail just how easy it is for scammers to prey on unsuspecting homeowners, and how difficult it can be to obtain justice," said State Senator Myrie. "Communities like mine in Central Brooklyn are particularly vulnerable. I'm grateful for Attorney General James' partnership in strengthening our laws to prosecute deed theft and protect New Yorkers' homes."

"When elected to the 77th Assembly District, I promised I will do my best to protect the residents of my district. My promise was a main motivation in sponsoring the Deed Theft Bill with State Senator Myrie and Attorney General James," said AssemblymemberDais. "This landmark bill will protect the homeowners in my district and across the great state of New York from con artists that are specifically targeting the seniors that own homes. Our bill will provide the Attorney General and district attorneys across the state a strong legal tool to prosecute the scam artists taking advantage of homeowners in our state. I want to thank my Assembly and Senate colleagues for the overwhelming bipartisan support, thank the Attorney General for pushing this issue to the top of her agenda, and thank the Governor for recognizing and signing this landmark legislation that will protect the homeowners in our state."

Deed theft occurs when someone takes the title, or deed, to another person's home without the homeowner's knowledge or approval. It disproportionately impacts elderly homeowners and homeowners of color, especially New Yorkers in gentrifying neighborhoods who live in homes that have significantly increased in value over the years.

Under previous law in New York state, deed theft itself was not a crime. This law amends penal law to make deed theft a form of grand larceny, extends the statute of limitations to allow for more time to identify and investigate cases, and grants OAG the original criminal jurisdiction to prosecute deed theft crimes alongside district attorneys statewide. These new criminal provisions will increase enforcement opportunities and help keep New Yorkers in their homes. Attorney General James' new law:

• Establish 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 Attorney General James' legislation co-sponsored by State Senator Kavanagh and Assemblymember Weinstein, 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 Attorney General James' 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 (HEPTA) to allow homeowners with active utility liens the opportunity to cancel any contract to sell their property.

The new criminal reforms taking effect today and the civil reforms passed last year will help New Yorkers stay in their homes. Under these new laws, homeowners will have stronger protections against deed theft, law enforcement will have new tools to prosecute deed thieves, and scammers will be deterred from stealing homes.

This is the latest action Attorney General James has taken to combat deed theft. In July 2024, Attorney General James announced the conviction and sentencing of Marcus Wilcher, the leader of a Queens deed theft ring that sold three homes without the knowledge of the rightful property owners and pocketed over $1 million. In June 2023, Attorney General James applauded the passage of her legislation, cosponsored by State Senator Brian Kavanagh and Assemblymember Helene Weinstein, that reformed New York's civil laws to provide more tools to prevent deed theft. In July 2023, Attorney General James announced the indictment of a Long Island man for deed theft for allegedly stealing two homes in Harlem which had a combined estimated value of more than $4.7 million during the relevant times of possession. In February 2021, Attorney General James announced an $800,000 grant, funded by Office of the Attorney General (OAG) settlements, to the New York City Department of Housing Preservation and Development and the Center for New York City Neighborhoods as part of a program aimed at increasing awareness of deed theft in vulnerable neighborhoods. In January 2020, Attorney General James launched the Protect Our Homes initiative and announced the formation of an interagency law enforcement task force to respond to Deed Theft and other real estate fraud.

New Yorkers who believe they are a victim of deed theft are encouraged to contact OAG by calling 1 (800) 771-7755, emailing [email protected], or filing a confidential complaint.

The Homeowner Protection Program, a network of housing counselors and legal services providers throughout New York supported by OAG, offers free housing counseling and legal assistance statewide. Homeowners can contact HOPP online or call 1 (855) 466-3456 to get help.