Legal Question in Real Estate Law in New York

Re: Transfer of Deed

If there are mortgages against the property then transferring the deed will not alleviate the owner of his obligations as far as the mortgages/liens. So even if he transfers the deed and there is still a mortgage, when he tries to sell and pay off the mortgage the outstanding judgments/liens that come up when a title search is done, will be paid from the proceeds.

Re: Transfer of Deed

FRAUDULENT CONVEYANCES are defined as conveyances done to defraud or delay creditors, such as the person(s) or company who won the Judgmentin this case, by placing the property conveyed out of their reach. A FRAUDULENT CONVEYANCE can be reversed as you phrased it, or voided, so that the Judgment creditor can get the property to satisfy the Judgment.

In determining whether a transaction is a fraudulent conveyance to be voided, the courts will consider whether or not the deed was transferred for a fair price and the relationship of the transferor and the transferee, e.e.g, if the transferee is a close relative or friend, and if the transfer might be some sort of a sham with the debtor still the real owner. (Presumably, we don't have a fair market sale here, or otherwise nothing would be gained from transferring the deed since the judgment creditor could simply then go after the proceed of the sale.)