Anyhow, my relative is sued for bankruptcy on year 2009 (he is still not bankrupt at the moment, but blacklisted), he transferred his property (own house) to his sister in the same year 2009. I've heard that the official assignees or government have to power to take back the property of the bankrupt (even after transferred or sold to third party). Is this true?

Question 19
What happens if the bankrupt has transferred his house or other asset to a third party prior to bankruptcy ?

Answer
The DGI has the power to avoid transactions made within a period of 5 years prior to the bankruptcy. The DGI will investigate the transfer and may recover the asset if the transfer was to defeat creditors or if the consideration for the transfer was less than the market value or if it was in preference to other creditors. Disposing or transferring property prior bankruptcy with intent to defeat the creditors is an offence under the Bankruptcy Act. (2 years / 5 years)

i believe after it is 'sold', there is no one else can take back. i mean think of it, if i spent 500k to buy a property, 2 years later some authority said they will take property away because it was owned by a bankrupt person.