What's happening
This bill allows courts to restore property and title to the rightful owner after a fraudulent transfer, and requires recording such judgments.
Why it matters
Strengthens protections for victims of real estate fraud. by allowing courts to restore both possession and legal title of property to the last legitimate owner, not just current occupants, helping those who lost property through fraudulent means to fully recover their rights.
Creates a public record of fraud-related judgments. by requiring county or city recording clerks to officially document court orders that nullify fraudulent transfers, and to annotate both the fraudulent deeds and any subsequent transactions that relied on the fraudulent transfer, which helps protect future buyers and lenders from unknowingly acquiring tainted titles.
Notifies and protects third parties. who may have acquired an interest in the property after the fraudulent transfer, giving them a right to be heard in court before losing their interests—helping ensure innocent purchasers or lienholders aren’t unfairly penalized without due process.
Improves clarity and transparency in property records. by mandating clear notations in the land records system, making it easier for prospective buyers, title companies, and others to identify when a property’s title has been compromised and subsequently restored, reducing the risk of ongoing fraud or legal disputes.
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Who cares
Property owners defrauded of title
The bill would require courts finding a fraudulent transfer to restore title and direct delivery of possession to the last bona fide owner.
Civil and criminal courts
The bill would require courts to send restoration judgments and orders to recording clerks and notify nonparties with recorded interests based on subsequent conveyances dependent on the fraud.
County and city recording clerks
The bill would require clerks to promptly record the judgment and order and annotate fraudulent documents and dependent subsequent conveyance documents.
Nonparty holders of recorded property interests
Those whose interests rest on subsequent conveyances dependent on the fraud would receive notice and an opportunity to be heard within sixty days of service to preserve their interests.
Headline styles
Return Fraudulently Taken Property
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Return Fraudulently Taken Property
In Senate Committee · Judiciary · Sponsor Kevin S. Parker
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6339
2019-2020 Regular Sessions
IN ASSEMBLY
March 6, 2019
Introduced by M. of A. PERRY -- read once and referred to the Committee on Judiciary
AN ACT to amend the real property actions and proceedings law, in relation to compelling the delivery of real property subject to a fraudulent transfer to the person entitled thereto and provides for the recording of judgments and orders relating to a fraudulent conveyance of title to property
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 221 of the real property actions and proceedings law, as amended by chapter 507 of the laws of 2009, is amended to read as follows:
§ 221. Compelling delivery of possession of real property. 1. (a) Where a judgment affecting the title to, or the possession, enjoyment or use of, real property allots to any person a distinct parcel of real property, or contains a direction for the sale of real property, or confirms such an allotment or sale, it also may direct the delivery of the possession of the property to the person entitled thereto, subject to the rights and obligations set forth in section thirteen hundred five of this chapter.
(b) Upon a finding by a civil or criminal court of competent jurisdiction that a transfer of title to real property was effected in whole or in part by fraud, the court in its written judgment shall direct the delivery of the possession of the property to the person who or entity that the court finds to be the last bona fide owner of the property prior to the fraudulent transfer and shall direct that title to such property be restored to such person or entity. The court shall arrange for the judgment and order to be provided to the offices of the recording clerk for the county or city in which the property is located. The recording clerk shall promptly record the judgment and order and place a notation on any documents deemed fraudulent by the court and on any
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08691-04-9
A. 6339 2
documents relating to subsequent conveyances of title that were dependent upon the fraudulent conveyance and documents. Such notation shall reference the judgment and order and indicate the name of the person or entity legally entitled to possession of and title to the property.
(c) At the time of issuance of a judgment and order nullifying a fraudulent transfer of title to property and directing delivery of possession of the property to the person entitled thereto, as described in paragraph (b) of this subdivision, the court issuing such judgment and order shall provide notice of the judgment and order to any person or entity not a party to the proceedings who or that asserts an interest of record in and to the fraudulently transferred property based upon subsequent conveyances of title that were dependent upon the fraudulent conveyance and documents. Such person or entity shall be provided with an opportunity to be heard before the court within sixty days of being served with the notice of order for the purpose of preserving his or her interests in the property.
2. If a party, or his representative or successor, who is bound by the judgment, withholds possession from the person thus declared to be entitled thereto, the court, by order, in its discretion, besides punishing the disobedience as a contempt, may require the sheriff to put that person into possession. Such an order shall be executed as if it were an execution for the delivery of the possession of the property.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.