NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1228
SPONSOR: Jacobson
 
TITLE OF BILL:
An act to amend the real property law, in relation to requiring that
certain sellers of real property provide a certificate of occupancy to
the purchaser of the real property
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill will require that most sellers of real property provide a
certificate of occupancy to the purchaser of the real property.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends the real property law by adding a new section 259 to
require disclosure to purchaser or prospective purchaser, or the agent
of the purchaser or prospective purchaser, providing them with a copy of
a certificate of occupancy for the real property that is the subject of
the deed of sale. Such certificate shall have been issued within 30 days
of the date of transfer of ownership of the property. The provisions of
this section shall not apply to transfers of real property: (a) to a
relative of the owner; (b) made pursuant to a court order, including but
not limited to transfers by a referee in a foreclosure action, to a
party in a divorce proceeding or by a bankruptcy trustee in a bankruptcy
or reorganization proceeding; (c) by a municipality; (d) by an executor
or administrator of an estate; (e) by a beneficiary of an estate
provided such transfer is made within sixty days of the date on which
the beneficiary acquired title to the property; (0 by a deed in lieu of
foreclosure; (g) due to the operation of law pursuant to a deed, includ-
ing but not limited to a tax deed; or (h) of real property that does not
have a dwelling located thereon.
Any agreement by a purchaser of premises for dwelling purposes waiving
or modifying his or her rights as set forth in this section shall be
void as contrary to public policy.
Section 2 sets forth the effective date which is 120 days after enact-
ment.
 
JUSTIFICATION:
Code enforcement is generally a reactive not a proactive process.
Unfortunately, in most municipalities, code enforcement is spotty and
infrequent due to lack of funding and the need to inspect so many prop-
erties. Usually, code enforcement officials act upon tenants' complaints
or visible violations rather than on a regular, continuing basis.
Because transfers of property occur based on old Certificates of Occu-
pancy, tenants and new purchasers are unable to ascertain the exact
status of the property involved. While private inspections by prospec-
tive purchasers are available, there is no requirement that the
suggested repairs be made; due to the economics involved, repairs are
either left unmade or made only to bring a home to a "working order"
condition. Tenants are normally presented with a take-it-or leave-it
situation with only minimal repairs (e.g. appliances, painting) being
done.
Every municipality has its horror stories. Tragically, in the City of
Newburgh in March 2015, three people died due to carbon monoxide poison-
ing in a multi-family house which did not have carbon monoxide detec-
tors.
By requiring a new Certificate of Occupancy upon transfer of property,
more buildings will be kept up to code. Tenants and those purchasing
properties will be assured of premises which are up to code. This will
mean better living conditions as well as safer premises which should
lead to a lower likelihood of fires due to old electrical or heating
systems.
 
PRIOR LEGISLATIVE HISTORY:
2019-2020: A10190 - Referred to Assembly Judiciary Committee
2021-2022: A360 - Referred to Assembly Judiciary Committee
 
FISCAL IMPLICATIONS TO STATE AND LOCAL GOVERNMENTS:
None to State. Possible net gain in proceeds to local governments
through fees charged for code inspections.
 
EFFECTIVE DATE:
One hundred twenty days succeeding the date upon which it shall have
become a law.
STATE OF NEW YORK
________________________________________________________________________
1228
2023-2024 Regular Sessions
IN ASSEMBLY
January 13, 2023
___________
Introduced by M. of A. JACOBSON -- read once and referred to the Commit-
tee on Judiciary
AN ACT to amend the real property law, in relation to requiring that
certain sellers of real property provide a certificate of occupancy to
the purchaser of the real property
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The real property law is amended by adding a new section
2 259 to read as follows:
3 § 259. Certificates of occupancy; required disclosure to purchaser. 1.
4 Prior to executing a deed of sale with a purchaser or prospective
5 purchaser of real property, the owner of the real property shall provide
6 the purchaser or prospective purchaser, or the agent of the purchaser or
7 prospective purchaser, with a copy of a certificate of occupancy for the
8 real property that is the subject of the deed of sale. Such certificate
9 shall have been issued within thirty days of the date of transfer of
10 ownership on the property.
11 2. The provisions of this section shall not apply to transfers of real
12 property:
13 (a) to a relative of the owner;
14 (b) made pursuant to a court order, including but not limited to
15 transfers by a referee in a foreclosure action, to a party in a divorce
16 proceeding or by a bankruptcy trustee in a bankruptcy or reorganization
17 proceeding;
18 (c) by a municipality;
19 (d) by an executor or administrator of an estate;
20 (e) by a beneficiary of an estate provided such transfer is made with-
21 in sixty days of the date on which the beneficiary acquired title to the
22 property;
23 (f) by a deed in lieu of foreclosure;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02387-01-3
A. 1228 2
1 (g) due to the operation of law pursuant to a deed, including but not
2 limited to a tax deed; or
3 (h) of real property that does not have a dwelling located thereon.
4 3. Any agreement by a purchaser of premises for dwelling purposes
5 waiving or modifying his or her rights as set forth in this section
6 shall be void as contrary to public policy.
7 § 2. This act shall take effect on the one hundred twentieth day after
8 it shall have become a law.