New York S 4238: Compels the delivery of real property subject to a fraudulent transfer to the person entitled thereto

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S04238 Summary:

BILL NOS04238 

&nbsp

SAME ASNo Same As

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SPONSORPARKER

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COSPNSR

&nbsp

MLTSPNSR

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Amd §221, RPAP L

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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.

Go to top S04238 Actions:

BILL NOS04238 

&nbsp

02/03/2025REFERRED TO JUDICIARY

01/07/2026REFERRED TO JUDICIARY

Go to topS04238 Committee&nbspVotes:

Go to topS04238 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS04238 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4238

 2025-2026 Regular Sessions

 IN SENATE

 February 3, 2025
 ___________

 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.
 LBD07881-01-5

 S. 4238 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 their
 16 interests in the property.
 17 2. If a party, or [his] such party's representative or successor, who
 18 is bound by the judgment, withholds possession from the person thus
 19 declared to be entitled thereto, the court, by order, in its discreti