Council Member Nantasha Williams has introduced legislation aimed at strengthening protections for homeowners against predatory title clouding.
The bill, Int. 1086-2024, was introduced at the New York City Council’s Stated Meeting on Oct. 10. It was developed in collaboration with Brooklyn Legal Services Corporation A (BKA), which has represented numerous clients facing title clouding issues.
The proposed legislation would require timely notifications to property owners and interested parties when deed- or mortgage-related documents are recorded. Under the bill, the Department of Finance (DOF) would be mandated to notify all interested parties via email, text message, and postal mail within 30 days of any such document being filed for a property.
Williams explained that the initiative is designed to keep low-income families informed and protected from predatory practices that can result in clouded titles and, in some cases, the loss of disaster recovery aid.
A clouded title refers to a claim or charge on a property that can make transferring ownership difficult. Such issues can also prevent homeowners from accessing aid, including long-term rebuilding assistance after natural disasters.
Williams emphasized that low-income families are disproportionately affected by clouded titles. Lacking resources to resolve title defects through legal channels, these homeowners are left vulnerable to significant financial setbacks.
“This legislation ensures that property owners are informed and protected against harmful title issues that could jeopardize their property,” Williams said. “By requiring the Department of Finance to notify interested parties when deed- or mortgage-related documents are recorded, we can help prevent the cascading financial challenges that clouded titles often create for low-income families.”
Tamara del Carmen, Director of the Consumer and Economic Advocacy Program at BKA, shared a case in which a client was unaware a scammer had recorded a fraudulent contract of sale and a new deed.
“He wasn’t aware the home was ‘sold’ to a new owner until after the fact, and he feared it’d be impossible to get the property back,” del Carmen said. “Thankfully, his son reached out, and our team was able to save the home. But it could have been resolved sooner and with far less stress if he had received notice earlier. This bill will add an important layer of protection for homeowners and offer them peace of mind.”
