New York Attorney General Letitia James reminded New Yorkers during the summer that a new law (S08306) establishing deed theft as a crime, and expanding the Office of the Attorney General’s (OAG) ability to prosecute deed theft, went into effect in mid-July.

 

According to the OAG, deed theft occurs when someone takes the title, or deed, to another person’s home without the homeowner’s knowledge or approval. They said 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.

 

The legislation, which was co-authored by James and sponsored by Brooklyn’s State Sen. Zellnor Myrie and Bronx Assembly Member 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 the OAG original criminal jurisdiction to prosecute deed theft.

 

“Deed theft is a merciless crime that robs New Yorkers of their homes, communities, and financial stability,” said 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.”

 

OAG officials said the law is the attorney general’s latest effort to protect New Yorkers from deed theft, a criminal scam which they said, “robs New York families of their homes and livelihoods.”

 

New Yorkers who believe they have been a victim of deed theft are encouraged to contact the OAG by calling 1(800) 771-7755, emailing deedtheft@ag.ny.gov, or filing a confidential complaint.

For his part, Dais, who broadly represents the Bronx neighborhoods of Mt. Hope, Highbridge, Morris Heights the said of the new law, “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.”

 

The assemblyman added, “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.”

OAG officials said that under previous law in New York State, deed theft itself was not a crime. They said the latest 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 the OAG the original criminal jurisdiction to prosecute deed theft crimes alongside district attorneys statewide. OAG officials said these new criminal provisions will increase enforcement opportunities and help keep New Yorkers in their homes.

 

Specifically, they said the Attorney General’s new law will:

• establish deed theft as a crime (grand larceny) and can be prosecuted as such, as follows:
  • 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.

 

Officials went on to say that last year, James supported legislation sponsored by Manhattan’s State Sen. Brian Kavanagh and Brooklyn’s Assembly Member 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. They said that law went into effect in December 2023.

OAG officials said previously, there were very few legal remedies available to homeowners and prosecutors once a scammer had obtained the deed to someone’s home. They said that now prosecutors can 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.

 

They said the new 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. They said 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.

 

OAG officials said that in July 2024, 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. They said that in July 2023, the attorney general announced the indictment of a Long Island man for deed theft for having allegedly stolen two homes in Harlem which had a combined estimated value of more than $4.7 million during the relevant times of possession.

 

They went on to say that in February 2021, James announced an $800,000 grant, funded by OAG settlements, to the New York City Department of Housing Preservation and Development (HPD) and the Center for New York City Neighborhoods as part of a program aimed at increasing awareness of deed theft in vulnerable neighborhoods.

 

They said that in January 2020, James launched the Protect our Homes initiative and also announced the formation of an interagency law enforcement task force to respond to deed theft and other real estate fraud.

 

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.