Title - Recording Acts

Question 1

Recording Acts

Answer 1

• Deed doesn’t need to be recorded to be valid & convey good title
• All states have enacted recording Acts that establish priorities among conflicting claims to land

Question 2

Common Law Recording

Answer 2

First in Time First in Right

• Strong presumption that the first pers. to record a prop. int. is the first pers. with a tight to the prop.

Question 3

Notice Statutes

Answer 3

• Buyer purchases without notice of prior int.
  
  • Bone Fide Purchaser

Question 4

Race Statutes

Answer 4

• Minority of States
• Buyer who records first wins, regardless of his knwoledge of any prior conflicting interests

Question 5

Race-Notice Statute

Answer 5

• Subsequent Purchaser has no notice of prior conflicting int. AND
• Is the first to record

Question 6

Who is a bona fide purchaser?

Answer 6

1. Buyer who takes without notice of any other claims AND
2. Pays value

Question 7

Who is entitled to protection under the recording statutes?

Answer 7

A grantee who pays value for an interest in real prop.

Question 8

What is the shelter rule?

Answer 8

Grantors who are protected by the recording act protect “shelter” their grantees who would otherwise be unprotected

• Exception - A purchaser who is not a BFP can’t convey to BFP & then buy back the prop. to get the status of BFP

Question 9

Actual Notice

Answer 9

• Grantee has actual, personal knowledge of prior int
• Can’t win under notice or race-notice statute

Question 10

Inquiry Notice

Answer 10

• If reas. investigation would disclose prior claims, grantee can’t prevail against them
  
  • Someone else has poss. or doc. referenced in chain of title

Question 11

Constructive Notice

Answer 11

• Grantees have notice of any Prior conveyances:
  
  • Properly recorded &
  • appears in chain of title

Question 12

What are the methods for recording conveyances ?

Answer 12

1. Tract Index
   
   • Records for each parcel in the county have chronological listing of each conveyance of the prop
2. Grantor/Grantee Index (Majority)
   
   • Step 1 - pot. buy. searches for grantor’s name as grantee in grantee index
   • Step 2 - search for name of grantor’s grantor as a grantee … until title searched back to its inception (Common law rule) OR as far back as rec. statute provides
   • Step 3 - Grantors are searched as grantors to verify chain of title

Question 13

What is a wild deed?

Answer 13

• Deed recorded outside the chain of title

Question 14

What is estoppel by deed?

Answer 14

Applies when a grantor transfers title to prop. that they don’t actually own BUT they later acquire title to

• Minority - title transf. auto. to the prior grantee (Grantor estopped from later denying the effectiveness of the deed)
• Majority - Prev. grantee must go to court and assert a claim to title