Real Estate was transferred via Quit Claim Deeded to another person for $0. A creditor wants the property returned to the Transferor, calling the transfer a fraudulent transfer, as he wants to lien the property for money owed. The transfer of the property rendered the Transferor insolvent. The Transferee is claiming bona fide purchaser (BFP) and that Cal. CC 3439.08 bars the fraudulent transfer claim; Cal. CC 3439.01(a)(1). I am seeking case law and opinion on this matter.
If you want an attorney to do research and provide you a written opinion, then hire one. You are missing the point of Avvo. No one is going to assume that risk without compensation. It is the equivalent of issuing an insurance policy without charging a premium. And it seems to me that someone living in San Clemente can afford a lawyer.
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Section 3439.07 of the California Civil Code (California's verision of the Uniform Fraudulent Transfer Act) allows a creditor to bring an action to avoid the fraudulent transfer. A fraudulent transfer exists when either: (1) a debtor makes a transfer or incurs an obligation with actual intent to hinder, delay or defraud any creditor, or (2) debtor receives less than reasonably equivalent value for the transfer or obligation and debtor is insolvent or is reasonably expected to become insolvent.
This situation requires far more information and extensive legal research. It is not possible to provide case law and legal opinion without the underlying facts. Generally speaking, a transfer for zero consideration would not constitute a bona fide transaction.
Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice for a particular case. This Avvo.com posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult with your own attorney.
A "bona fide purchaser" is only "bona fide" if she pays fair market value for the property. A transfer for $0 would not be a bona fide transfer.
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