Unlawful Property Transfers

Division 2, Part 4, Title 4, Chapter 5 of the Civil Code deals with unlawful transfers in the acquisition of property in California.

Section 1227 provides that 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 is void as against every purchaser or incumbrancer, for value, of the same property, or the rents or profits.

Section 1228 states that no instrument is to be avoided under the last section, in favor of a subsequent purchaser or incumbrancer having notice 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.

Section 1229 says that, 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.

Section 1230 states that, 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 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.