- New York regulates “distressed property contracts” under Section 265B of the Conveyances and Mortgages Act (see http://public.leginfo.state.ny.us/menugetf.cgi)
- The State:
- Requires all contracts for consulting to be fully executed with full agreement and in writing in the language of negotiation (pro forma requirements); contain full disclosure and notices of cancellation rights and procedure and with 2 copies of notice to cancel attached;
- Prohibits up front fees; consultants from taking power of attorney from homeowners; consultants from retaining any original or other loan document ofPage 17 of 17 the homeowner; Prohibits limitation of liability clauses;
- Allows homeowner to cancel penalty-free for 5 days;
- Provides for civil and injunctive remedies
- NY licensed attorneys are exempt from this statute.
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