Recording Systems Flashcards
Race jurisdiction
Whoever records first
Language of the statute will say “first” but NOT “notice”
Notice Jurisdiction
The last BFP to take wins, regardless of whether they record first.
Language of statute will say “notice” but NOT “first”
Race-Notice Jurisdiction
A wins if they were a BFP and properly recorded first before A does.
Language of the statute will say both “notice” and “first”
Bona Fide Purchased Definition
To be a bona fide purchaser, a grantee must:
- Be a purchaser (or a mortgage lender), not one who received the property by gift, will, or inheritance
- Pay valuable consideration
- Take without notice (actual, constructive, or inquiry) of the prior conveyance
Common Law Transfer Rule
Whoever received the interest first was entitled to the property.
The Shelter Rule
Anyone who takes from a BFP will prevail against any interest the BFP would have prevailed against, even if that person is not themselves a BFP.
Wild Deed
If a recorded deed is not connected to the chain of title, the deed is a wild deed and is incapable of giving record notice of its existence.
HYPO: O sells Blackacre to A, who does not record. Then, A sells to B. B records the A-to-B deed. A-to-B deed is WILD.
Does not give record notice
If O sells AGAIN to C, and C records (if C has no knowledge of prior conveyances), then C WINS (in notice or race notice jxd, C is last BFP to take)
Estoppel By Deed
RULE: One who conveys realty in which they have no interest is estopped from denying the validity of that conveyance if they subsequently acquire the title that they had previously purported to transfer.
FACT PATTERN:
- Grantor purports to convey to grantee realty that they do not own
- Grantor later acquires title to the property
- Title automatically vests in Grantee
- Grantor is estopped from denying validity of pre-acquisition conveyance.
