Relates to excluding oil, gas and mineral land leases from leases that may be recorded by memorandum of lease.
TITLE OF BILL: An act to amend the real property law, in relation to excluding oil, gas or mineral land leases from leases that may be recorded by memorandum of lease
PURPOSE: To provide more information to persons purchasing real property regarding oil, gas or mineral land leases.
SUMMARY OF PROVISIONS: This legislation would amend Real Property law to require more detailed information on oil, gas, and mineral leases be filed with property deeds, instead of the current provisions, which only requires filing of a memorandum of lease.
EXISTING LAW: Section 291-c of the real property law.
JUSTIFICATION: Often, after executing an oil, gas, or mineral lease in New York State, the lessee will record a "memorandum of lease" with the relevant county clerk's office. Such a memorandum provides only the bare minimum of information for public review about each specific lease agreement. Accordingly, the real estate industry in counties that have many oil and gas leases, which have increased exponentially over the past several years due to the possibility of shale gas extraction in the Marcellus play, has been greatly affected. Residential property valuation can be heavily dependent upon the specific terms of an oil, gas, or mineral lease. Notably, the duration of a lease, any easements or surface rights granted to a lessee, among other concerns, can directly impact a property's value. Also, the existence of a lease on one's land, or even on neighboring property given the lending institutions' setback requirements, can impair the viability of a home to be eligible for title insurance or a mortgage. This is critical information for valuation of real property; therefore, the exact terms of a lease must be available to both assessors and lending institutions.
LEGISLATIVE HISTORY: 2013 A.842 (Similar) Lifton - Referred to Judiciary. 2011 - 2012 A.8480 (Similar) Lifton - Died in Judiciary.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 4879 2013-2014 Regular Sessions IN SENATE April 29, 2013 ___________Introduced by Sens. TKACZYK, ADDABBO, DILAN, KRUEGER, PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the real property law, in relation to excluding oil, gas or mineral land leases from leases that may be recorded by memorandum of lease THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 291-c of the real property law, as added by chapter 602 of the laws of 1957, is amended to read as follows: S 291-c. Recording memoranda of leases. In lieu of the recording of a lease for a term exceeding three years, pursuant to section two hundred ninety-one of this
[chapter]ARTICLE, there may be recorded with like effect a memorandum of such lease, executed by all persons who are parties to the lease, and acknowledged or proved, and certified, in the manner to entitle a conveyance to be recorded; PROVIDED, HOWEVER, THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO THE RECORDING OF OIL, GAS OR MINERAL LAND LEASES. A memorandum of lease thus entitled to be recorded shall contain at least the following information with respect to the lease: the name of the lessor and the name of the lessee and the addresses, if any, set forth in the lease as addresses of such parties; a reference to the lease, with its date of execution; a description of the leased premises in the form contained in the lease; the term of the lease, with the date of commencement and the date of termination of such term, and if there is a right of extension or renewal, the maximum peri- od for which or date to which the lease may be extended or the number of times or date to which it may be renewed, and the date or dates on which such rights of extension or renewal are exercisable. Whenever a memorandum of lease is presented for recording, the lease shall also be submitted to the recording officer for the purpose of examination to determine whether or not such memorandum of lease isEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02503-01-3 S. 4879 2
subject to the tax on mortgages provided by article eleven of the tax law. S 2. This act shall take effect immediately and shall apply to all agreements, leases and contracts entered into, issued, renewed, extended, altered or modified on or after such effective date.