New York Real Property Code § 260

Lands adversely held may be conveyed or mortgaged
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§ 260. Lands adversely held may be conveyed or mortgaged. No grant,\nconveyance or mortgage of real property or interest therein shall be\nvoid for the reason that at the time of the delivery thereof such real\nproperty is in the actual possession of a person claiming under a title\nadverse to that of the grantor.\n

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