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 discretion, 20 besides punishing the disobedience as a contempt, may require the sher- 21 iff to put that person into possession. Such an order shall be executed 22 as if it were an execution for the delivery of the possession of the 23 property. 24 § 2. This act shall take effect immediately.