Fraudulent Disposition Of Mortgaged Property: NY Penal Law § 185.10

by ECL Writer
Fraudulent disposition of property subject to a conditional sale contract

Selling or transferring mortgaged property without ensuring awareness and consent from all parties involved is illegal. New York Penal Law § 185.10 governs the fraudulent disposition of mortgaged property. If you obtain a mortgage on the property and subsequently sell, assign, destroy, or otherwise dispose of any part of the property encumbered by the mortgage with the intent to defraud either the mortgagee or the property purchaser, you may face prosecution. This law isn’t limited to residential property; it encompasses commercial and various other property types secured by a mortgage. Violating this law can result in legal consequences, emphasizing the importance of transparency in property transactions.


The fraudulent disposition of mortgaged property is categorized as a class A misdemeanor. If found guilty of this offense, you may face imprisonment for a maximum period of one year. Additionally, the court may impose probation for up to three years and levy fines as part of the penalties.


To secure a conviction for this offense, the prosecution must establish your intent to defraud. If they cannot substantiate this intent, or if you can demonstrate an alternative, non-fraudulent intent, you can assert a valid defense against the charge.

New York Penal Law § 185.10: Fraudulent Disposition of Mortgaged Property

An individual commits the crime of fraudulent disposition of mortgaged property when, having previously executed a mortgage for real or personal property, or any document meant to function as such, they engage in actions like selling, assigning, exchanging, concealing, damaging, destroying, or otherwise transferring any portion of the property. This must occur while the mortgage or the related document is currently a legal claim on the property, and it must be done with the specific intent to defraud either the mortgagee or a prospective purchaser of said property.

Related Offenses

Hiring A New York Lawyer For Fraudulent Disposition of Mortgaged Property Case

Hiring a New York lawyer for a fraudulent disposition of mortgaged property case is crucial. In the complex legal landscape of the state, an experienced attorney is essential to navigate the intricacies of fraud allegations involving real estate. A knowledgeable lawyer will assess the evidence, scrutinize property transactions, and formulate a solid defense strategy. They will also guide clients through court proceedings, negotiations, and potential settlements. New York’s stringent laws and regulations demand expertise in mortgage fraud cases. With a skilled attorney by your side, you enhance your chances of protecting your rights and achieving a favorable outcome in this challenging legal situation.

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