§ 266 — Rights of purchaser or incumbrancer for valuable consideration protected

New York § 266

• Jurisdiction: New York
• Law RPP: Real Property
• Art. 8: Conveyances and Mortgages

Text

§ 266. Rights of purchaser or incumbrancer for valuable consideration\nprotected. This article does not in any manner affect or impair the\ntitle of a purchaser or incumbrancer for a valuable consideration,\nunless it appears that such purchaser or incumbrancer had previous\nnotice, whether actual or constructive, of the fraudulent intent of his\nimmediate grantor, or of the fraud rendering void the title of such\ngrantor. There shall be a rebuttable presumption that a purchaser or\nincumbrancer had notice of fraud or fraudulent intent in the case of a\ntransfer of mortgaged real property, between a purchaser and seller who\nare not associated parties, that is not accompanied by the recording\nwith the clerk of the county or with the commissioner of deeds in which\nthe property is located, of a statement, executed by the mortgagee, and\nduly acknowledged, stating, substantially, that (a) a party is assuming\nthe seller's indebtedness secured by the mortgage; or (b) that the\nindebtedness secured by the mortgage has been satisfied.\n For the purposes of this section, "associated parties" means spouses,\nex-spouses, parents and children, siblings, a homeowner and that\nhomeowner's family trust, or a homeowner and that homeowner's\nwholly-owned limited liability company.\n