What's happening
This bill allows courts to restore property titles and possession to rightful owners after fraudulent transfers and mandates recording such judgments.
Why it matters
Strengthens protection for property owners who are victims of fraud. The bill requires courts to restore both possession and legal title of real estate to the last legitimate owner if a fraudulent transfer is proven, closing loopholes that previously allowed fraudulent transferees to retain control.
Creates a permanent, public record of fraud-related judgments. By mandating that judgments and orders nullifying fraudulent transfers be recorded and notated in the property records, the bill helps prevent further unauthorized or confused sales and protects future buyers from unknowingly acquiring tainted titles.
Provides due process for third parties. Anyone who claims an interest in a property through subsequent transfers based on a fraudulent conveyance must be notified and given a chance to be heard in court, which balances fraud prevention with fairness for potentially innocent parties.
Deters property fraud and increases accountability. By making the consequences of fraudulent conveyances more severe and transparent, the bill could discourage fraudulent activity and make it easier for rightful owners to reclaim their property.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
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 Assembly Committee · Judiciary · Sponsor N. Nick Perry
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4638
2019-2020 Regular Sessions
IN SENATE
March 19, 2019
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed 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
S. 4638 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.
Sponsor's memo
Title of bill
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 fraudu- lent conveyance of title to property
Purpose
To permit any civil or criminal court of competent jurisdiction that has determined in its findings that the conveyance of transfer of real prop- erty title fraudulent, to be granted the authority to issue an order restoring the title to the last owner of the property that obtained title as of right.
Summary of provisions
Section one of the bill amends § 221 of the real property actions and proceedings law to assert that when a civil or criminal court determines that a transfer of title was accomplished through fraudulent means the court in its written judgement shall direct that the real property be delivered to the proper owner or entity and that the title be restored to such owner or entity and requires the court to arrange for the judge- ment and order to be provided to the offices of the recording clerk in the county or city where the property is located.This section further requires the recording clerk to record the judgement and order and place a notation on any documents deemed fraudulent by the court and on any documents relating to subsequent conveyance of title based on fraudulent documents. The notation shall reference the judgement and order and include the name of the person or entity legally entitled to the proper- ty. Additionally, this section requires that at the time the court issues the judgement and order that the court provide a notice of the aforementioned judgement and order to any person or entity who or that asserts an interest in and to the fraudulently transferred property based upon subsequent conveyances of title that were dependent upon the fraudulent conveyance and documents. Finally, this section grants the interested person or entity an opportunity to be heard before the court within sixty days of being served with the notice of order for the purpose of preserving their interests in the property.
Read the full memo (729 words)
Section two of the bill provides the effective date.
Justification
The current method of deed recording based upon a process of sale and transfer of real property is filled with loopholes and opportunities for dishonest operators to steal and transfer property without timely discovery of the fraudulent act. By the time the fraud is discovered, title has often switched hands several times, leaving a trail of deceit which is costly and difficult to correct. For example, in the case of People vs. George Marks, under Indictment Number 2479-2008, Mr. Marks was found guilty of several counts of Grand Larceny and Falsifying Busi- ness s Records, in relation to stealing property belonging to a deceased owner of two properties valued in excess of $1,000,000. Mr. Marks was convicted and sentenced to years in prison; yet he has been able to continue claiming ownership of the property while serving time, display-
ing the gall to retain a management company to collect rent and manage the properties while he serves his time for the crime.
Although convicted and sentenced for stealing property, the recording clerk's office maintains that Mr. Marks is the recorded owner of the property. And due to the fact that the lawful owner is deceased and has no known heirs, except for the actions of a friend of the genuine owner who has persistently kept the authorities of the continued theft of the property, Mr. Marks, the convicted fraudster, would without a doubt, on his release from prison, be able to sell and benefit from the property he does not lawfully own.
There is currently no clear and easy process to restore a stolen title to the lawful owner.In cases where the lawful owner is deceased and no known interested parties are available to protect the lawful ownership of the property and rights of unknown heirs to inherit the property, this law would empower the courts to act to ensure that fraudsters are not able to steal and benefit from the theft of the property of a deceased owner even after conviction of theft.
Prior legislative history
New bill.
Fiscal implications
None to the State.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.