In the case of In re Moodie, ___ B.R. ___, 2007 WL 738435 (Bkrtcy.S.D.Fla.)(Raymond J.), the Court held that a prepetition transfer of bare legal title to an interest in real property was not a fraudulent conveyance.
When the involved real property was purchased, the seller listed debtor’s mother and the debtor as grantees as joint tenants. The debtor only learned that the property was titled in her name at a later point. The Court found that the debtor’s mother hired the real estate broker, signed the purchase agreement, paid the deposit, paid the balance due at closing, and paid all the expenses of ownership. The Court further found a lack of involvement by the debtor in the mortgage on the property. The debtor’s mother testified that the debtor was titled on the property so that she would have rights to property in the event of her death. Prior to the bankruptcy, the debtor conveyed her interest in the real property to her mother.
