NY S06171

Expands the definition of "covered contracts" to include transactions involving residences that are collateral for "distressed home loans," extending protections beyond foreclosure and default situations.

Extends the cancellation period for equity sellers from 5 business days to 14 business days to rescind covered contracts with equity purchasers.

Adds seven new prohibited practices for distressed property consultants, including inducing deed transfers, accepting ownership of deeds, impersonating law enforcement, making false credit threats, harassing communications, and placing liens without legal basis.

Creates a new Criminal Procedure Law section 420.45 allowing district attorneys to file post-trial motions to void instruments obtained through falsification (Penal Law sections 175.30 and 175.35) in residential real property transactions, with a rebuttable presumption of voidability upon conviction or guilty plea.

Exempts licensed attorneys providing legal representation under retainer agreements from the definition of "distressed property consultant," but excludes non-attorney employees of law firms not providing foreclosure representation.