Lawyers for Setting Aside a Deed in New York City

When you need to set aside a deed, we can help you prepare a case and prove it in court or obtain a settlement. You need lawyers who are experienced and knowledgeable with contesting and challenging a deed transfer. Most challenges against deeds involve transfers among family members, such as transfers between a parent and child to the exclusion of the other children.

Contesting a deed transfer involves a step-by-step evaluation of the case facts to determine the strength of the case. A lawyer for setting aside a deed can advise on these steps to identify the effective strategy to use for your case.

Grounds for Contesting a Deed

To set aside a deed, the first step is to determine the ground for contesting a deed. The legal remedy used to set aside a deed is called rescission, which means to restore the parties to their original status. If rescission is not available, then a constructive trust may be imposed on the sales proceeds in favor of the damaged party.

In New York, you can contest a deed transfer on the following grounds:

• Undue influence
• Fraud
• Mistake
• Lack of Capacity
• Duress
• Forgery

The type of ground you allege as a reason for contesting the deed will determine the statute of limitations. The statute of limitations is the period provided by law wherein a person can contest the transfer of such deed. The period is usually 6 years, but the date from which the 6 years is counted will depend on the ground. In the case of mutual mistake, it is counted from the time of the transaction; in the case undue influence, it is counted from the date the influence ceased; while in the case of fraud, it is counted from the date of discovery of fraud.

Constructive Trust

Not all deed transfers can be rescinded with the property reverting back to the original owner or his estate. When the property has already been transferred to a third party in good faith, the property cannot revert back to the original owner. As such, the original owner’s remedy is to seek a constructive trust over the sales proceeds.

A constructive trust is a legal remedy a court imposes to provide an equity interest of a property to the rightful owner, despite the fact that it is wrongfully held, possessed, and owned by another due to fraud, undue influence, breach of fiduciary duty, or other unjust actions. The constructive trust is designed to prevent unjust enrichment. In this case, when a wrongful owner sells property that does not rightfully belong to him, the sales proceeds are held in trust in favor of the rightful owner.

Undue Influence

Undue influence is a ground to set aside a deed. It happens when the influencing party uses inappropriate and unethical behavior, such as manipulation, isolation, and other tactics controlling the decision-making of the grantor, to pressure the grantor into signing the deed.

Proving undue influence usually requires the influencing party to have a motive, the opportunity to exercise influence, and the actual exercise of influence. Motive is easily reflected by the fact that the influencing party, a member of his family, or an entity where he has an interest is the beneficiary or grantee of the deed. Opportunity to exercise influence can be shown when the grantor is suffering from a mind-altering disease, when the influencing party enjoys proximity, a confidential relationship to, or exercises control over the grantor, and/or when the influencing party has isolated the grantor from his family and friend. The actual exercise of undue influence can be shown when the influencing party was the one who secured the attorney to draft the deed.

The statute of limitations for undue influence is six years from the time the undue influence ceased.

Fraud

Fraud signifies an intentional concealment or misrepresentation of material facts related to the deed transfer. In order for a fraud claim in setting aside a deed to prosper, the following elements must be present:

• There must be information that was misrepresented or concealed from the grantor;
• The other party had the intention to deceive or commit fraud upon the grantor;
• The grantor relied on the misrepresented or concealed information in making his decision to transfer the deed;
• The intentional misrepresentation or concealment of information resulted to damages to the grantor.

Examples of fraud could be false information related to the property’s condition or ownership rights, which would allow the grantor or his estate to rescind the deed.

The statute of limitations for fraud is six years from the date of discovery, although this period may be extended if the person committing the fraud actively conceals the wrongdoing or if the grantor is under a legal disability at the time of the fraud.

Mistake

Mutual mistake occurs when both parties share the same erroneous belief as to a material fact, which then fails to accomplish their mutual intent. Mistake must refer to a mistake of fact and not of law, must be mutual and substantial, and must exist at the time the contract was executed.

The statute of limitations for mutual mistake is six years from the time of the transaction.

Forgery

Forgery occurs when the signature in the deed is not the grantor’s. A forged deed does not create or transfer any rights. It is void from the beginning. As such, there is no statute of limitations to contest a forged deed.

Other Grounds

Duress and lack of capacity are other grounds for setting aside a deed.

Lack of capacity refers to the grantor’s inability to understand the nature and consequences of the deed transfer. Usually, this signifies mental disease or cognitive impairment on the part of the grantor.

Duress, on the other hand, occurs when the grantor is forced or compelled to sign and execute a deed as a result of threat of physical harm or some sort of illegal action. The threat must be illegal, must have induced a reasonable belief on the part of the grantor that the threat was real, and must have been the cause of signing the deed. The grantor must not have any reasonable alternative but to comply with the demand, overcoming the grantor’s free will.

Contesting a deed transfer is a complex matter. It requires a ground for rescission coupled with strong evidence supporting your ground. These pieces of evidence can be obtained, not only through one’s efforts, but through legal discovery procedures. Should you need legal representation, we, at the Law Offices of Albert Goodwin, are here for you. We have offices in New York City, Brooklyn, NY and Queens, NY. You can call us at 212-233-1233 or send us an email at [email protected].