Compels the delivery of real property subject to a fraudulent transfer to the person entitled thereto; provides for the recording of judgments and orders relating to a fraudulent conveyance of title to property.
STATE OF NEW YORK
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6196
2023-2024 Regular Sessions
IN SENATE
April 3, 2023
___________
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 convey-
ance of title to property
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 221 of the real property actions and proceedings
2 law, as amended by chapter 507 of the laws of 2009, is amended to read
3 as follows:
4 § 221. Compelling delivery of possession of real property. 1. (a)
5 Where a judgment affecting the title to, or the possession, enjoyment or
6 use of, real property allots to any person a distinct parcel of real
7 property, or contains a direction for the sale of real property, or
8 confirms such an allotment or sale, it also may direct the delivery of
9 the possession of the property to the person entitled thereto, subject
10 to the rights and obligations set forth in section thirteen hundred five
11 of this chapter.
12 (b) Upon a finding by a civil or criminal court of competent jurisdic-
13 tion that a transfer of title to real property was effected in whole or
14 in part by fraud, the court in its written judgment shall direct the
15 delivery of the possession of the property to the person who or entity
16 that the court finds to be the last bona fide owner of the property
17 prior to the fraudulent transfer and shall direct that title to such
18 property be restored to such person or entity. The court shall arrange
19 for the judgment and order to be provided to the offices of the record-
20 ing clerk for the county or city in which the property is located. The
21 recording clerk shall promptly record the judgment and order and place a
22 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.
LBD07576-01-3
S. 6196 2
1 documents relating to subsequent conveyances of title that were depend-
2 ent upon the fraudulent conveyance and documents. Such notation shall
3 reference the judgment and order and indicate the name of the person or
4 entity legally entitled to possession of and title to the property.
5 (c) At the time of issuance of a judgment and order nullifying a frau-
6 dulent transfer of title to property and directing delivery of
7 possession of the property to the person entitled thereto, as described
8 in paragraph (b) of this subdivision, the court issuing such judgment
9 and order shall provide notice of the judgment and order to any person
10 or entity not a party to the proceedings who or that asserts an interest
11 of record in and to the fraudulently transferred property based upon
12 subsequent conveyances of title that were dependent upon the fraudulent
13 conveyance and documents. Such person or entity shall be provided with
14 an opportunity to be heard before the court within sixty days of being
15 served with the notice of order for the purpose of preserving his or her
16 interests in the property.
17 2. If a party, or his or her representative or successor, who is bound
18 by the judgment, withholds possession from the person thus declared to
19 be entitled thereto, the court, by order, in its discretion, besides
20 punishing the disobedience as a contempt, may require the sheriff to put
21 that person into possession. Such an order shall be executed as if it
22 were an execution for the delivery of the possession of the property.
23 § 2. This act shall take effect immediately.
