Bill Text: NY S04638 | 2019-2020 | General Assembly | Introduced


Bill Title: Compels 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO JUDICIARY [S04638 Detail]

Download: New_York-2019-S04638-Introduced.html


                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 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.
                                                                   LBD08691-04-9

        S. 4638                             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 representative or successor, who is bound by the
    18  judgment, withholds possession from the person thus declared to be enti-
    19  tled thereto, the court, by order, in its discretion, besides  punishing
    20  the  disobedience  as  a  contempt,  may require the sheriff to put that
    21  person into possession. Such an order shall be executed as if it were an
    22  execution for the delivery of the possession of the property.
    23    § 2. This act shall take effect immediately.
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