Every instrument, other than a will, affecting an estate in real property, including every charge upon real property, or upon its rents or profits, made with intent to defraud prior or subsequent purchasers thereof, or incumbrancers thereon, is void as against every purchaser or incumbrancer, for value, of the same property, or the rents or profits thereof.
TransferUnlawful Transfers
Section § 1227
This law states that if someone makes a legal document, other than a will, related to real estate with the intention to cheat or defraud others, that document is considered void against anyone who legitimately buys or places a claim on that property.
real estate fraud void instrument real property
Section § 1228
This law states that if someone illegally sells or encumbers a property with someone knowing about a previous legal issue, the sale or encumbrance cannot be undone unless the person who benefitted from the original deal knew about and was involved in the fraud.
No instrument is to be avoided under the last section, in favor of a subsequent purchaser or incumbrancer having notice thereof at the time his purchase was made, or his lien acquired, unless the person in whose favor the instrument was made was privy to the fraud intended.
instrument subsequent purchaser incumbrancer
Section § 1229
If someone has the right to cancel or change a legal document that affects ownership or use of real estate, and they later sell or put a new financial claim on that property to someone who pays fairly, the original document is canceled as far as their right allows, for the benefit of the new buyer or lender.
Where a power to revoke or modify an instrument affecting the title to, or the enjoyment of, an estate in real property, is reserved to the grantor, or given to any other person, a subsequent grant of, or charge upon, the estate, by the person having the power or revocation, in favor of a purchaser or incumbrancer for value, operates as a revocation of the original instrument, to the extent of the power, in favor of such purchaser or incumbrancer.
power to revoke modify instrument estate in real property
Section § 1230
If someone can change or cancel something only after a certain time and they make a related promise or deal before that, it counts as if they went ahead and made the change or cancellation at the first moment they're allowed to do so.
Where a person having a power of revocation, within the provisions of the last section, is not entitled to execute it until after the time at which he makes such a grant or charge as is described in that section, the power is deemed to be executed as soon as he is entitled to execute it.
power of revocation execute power grant or charge
Section § 1231
This section mentions that there are additional rules about illegal transfers in a different part of the legal code focusing on the specific relationship between people who owe money and those they owe it to.
Other provisions concerning unlawful transfers are contained in Part II, Division Fourth, of this Code, concerning the Special Relations of Debtor and Creditor.
unlawful transfers debtor-creditor relations special relations
