Deed Theft in New York: How to Protect Your Home and What to Do If It Happens

Deed theft happens when someone uses fraud to take, or borrow against, a property that belongs to someone else, often without the owner’s knowledge. A forged signature on a deed, a fake power of attorney, or a “rescue” deal that turns out to be a transfer of ownership can all put a family’s home at risk. New York’s laws give added protection to homes owned by elderly or disabled people and to homeowners in default or foreclosure, and the state has strengthened its laws in recent years. Knowing them can help you protect your home or act quickly if something goes wrong.

What Counts as Deed Theft

New York’s Penal Law now defines deed theft as a form of larceny (Penal Law § 155.05(2)(g)). A person commits deed theft when he or she:

• “Intentionally alters, falsifies, forges, or misrepresents any written instrument involved in the conveyance or financing of real property, such as a residential or commercial deed or title,” with intent to deceive, defraud, or unlawfully transfer or encumber ownership rights;
• “with intent to defraud, misrepresents themselves as the owner or authorized representative of residential or commercial real property” to induce others to rely on that false information to obtain ownership or possession; or
• “with intent to defraud, takes, obtains, or transfers title or ownership of real property by fraud, misrepresentation, forgery, larceny, false pretenses, false promise, or any other fraudulent or deceptive practice.”

Deed Theft Is Now Grand Larceny

As of July 19, 2024, according to the Attorney General, “deed theft is now legally considered grand larceny, and can be prosecuted as such.” The degree depends on the property, not its value:

• Grand larceny in the first degree, a class B felony (Penal Law § 155.42): deed theft, “regardless of the value,” of residential real property “occupied as a home by at least one person,” of a home “owned by an elderly person, an incompetent, an incapacitated person, or physically disabled person,” or of “three or more residential real properties.”
• Grand larceny in the second degree, a class C felony (Penal Law § 155.40(3)): deed theft, “regardless of the value,” of “one residential real property,” “one commercial mixed-use property with at least one residential unit,” or “two or more commercial properties.”
• Grand larceny in the third degree, a class D felony (Penal Law § 155.35(3)): deed theft of “one commercial real property, regardless of the value.”

The Attorney General also reports that the law gives the office “concurrent original jurisdiction to prosecute deed theft crimes,” and 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 is later.

The 2023 Civil Protections (Chapter 630)

A year earlier, the Legislature passed a law aimed at “protecting victims of real property theft.” Chapter 630 of the Laws of 2023 was signed November 14, 2023, and took effect in December 2023. According to the Attorney General, the law:

• empowers the Attorney General and district attorneys “to pause related eviction and ownership dispute proceedings”;
• lets prosecutors “file a legal action on properties where deed theft has taken place or is suspected”;
• lets a homeowner seek to “stay an eviction proceeding in housing court”;
• expands “the list of crimes that allow prosecutors to invalidate fraudulent sale and loan documents”; and
• under the Home Equity Theft Prevention Act, lets homeowners with active utility liens cancel sale contracts.

The Home Equity Theft Prevention Act

Some deed theft starts with an offer that sounds like help. New York’s Home Equity Theft Prevention Act (Real Property Law § 265-a) was written for homeowners “who are in default on their mortgages or in foreclosure” and “may be vulnerable.” Among its protections, the homeowner (called the “equity seller”) may cancel a covered contract “until midnight of the fourteenth business day following the day” it is signed, and an instrument of conveyance cannot take effect sooner than midnight of the fifth business day after the covered contract is signed. If you are behind on your mortgage and someone offers to buy your house, take over your payments, or “save” your home, have your own attorney review the paperwork before you sign anything.

Warning Signs

• A notice from the county clerk or city register about a deed you did not sign. New York’s recording law requires the clerk or registrar to “mail a written notice of such conveyance to the owner of record” of residential property (RPL § 291).
• Someone claiming to own your home, or strangers occupying or showing the property.
• Unsolicited offers to buy your house quickly, especially after a foreclosure filing or a death in the family.
• Requests to sign documents you do not understand, or to sign a deed as part of a “loan” or “rescue.”
• Tax bills, utility bills, or other mail about your property suddenly stop arriving.

Do not rely on the clerk’s notice alone. The same statute says that “Failure to mail such notice or the failure of any party to receive the same, shall not affect the validity of the conveyance of the property.”

Steps to Protect Your Home

1. Check your property’s records periodically with your county clerk (in New York City, the city register) and confirm that the last recorded deed is yours.
2. Ask about alerts. In New York City, you can register with the Department of Finance’s ACRIS Notice of Recorded Document system for email or text alerts when deeds, mortgages, or related documents are recorded against your property. Elsewhere, ask your county clerk whether it offers a similar notice service, and sign up if one is available.
3. Open every piece of mail from the clerk, the register, your lender, or the tax collector.
4. Keep title in order. If a family member who owned the property has died, or you are unsure how title is held, talk to a lawyer about how to keep the records current.
5. Have your own attorney review any deed or power of attorney before you sign it.

If You Think Your Deed Was Stolen

1. Contact the Attorney General’s office: 1-800-771-7755 or deedtheft@ag.ny.gov. Homeowners at risk of foreclosure can also call the Homeowner Protection Program at 1-855-466-3456.
2. Report it to your local district attorney and police. Chapter 630 gives district attorneys tools to act on suspected deed theft.
3. Get copies of the recorded documents from the clerk or register, and gather your own deed, tax bills, and mortgage statements.
4. Talk to a lawyer quickly, especially if you receive eviction papers. Whether a stay or other relief is available depends on the facts.

How We Can Help

Rausa Russo Law represents property owners in real estate matters throughout New York State. If you are buying or selling, a careful closing and title review are part of protecting your ownership; see our guide to buying a home in New York. If you suspect deed theft, contact us to discuss your situation.

Related Reading

• Real Estate & Closings: practice group overview
• Request a flat-fee closing quote
• Guide: Selling a Home in New York
• Guide: Buying a Home in New York
• Closing Wire Fraud: How to Protect Your Down Payment
• Do I Need a Lawyer to Buy a House in New York?