Real Property Flashcards
(128 cards)
1
Q
Ownership
Fee Simple Absolute
A
100% ownership forever
2
Q
Ownership
Life Estate
A
- Rights and total control for life (can do whatever you want with it for life)
- Cannot commit waste
- “O to A for life”
You can even convey the property to someone, but that person would only have it for your lifetime
3
Q
Ownership
What is waste
A
- Destroy the property
- or destroy the value of the property
4
Q
Ownership
Reversion
A
Interest goes back to grantor (the original guy)
Note: Life estate and then you die, goes back to the grantor through the reversion
5
Q
Ownership
What does a life tenant have to pay
A
- Interest of the property if it has a Mortgage (Not the principal)
- Taxes on the property
6
Q
Ownership
Remainder
A
- Interest after Life estate
- “then to”
Note: this is if you convey it to someone else after the life estate.
7
Q
Ownership
What are the two types of remainder and how do they differ
A
Vested Remainder = Automatic Transfer
Contingent Remainder = Transfer is Subject to an event
Note: Contingent remainder I convey greenacre to X, then to Bob if.
Veste Remainder I convey greenacre to X, then to Bob.
8
Q
Ownership
Vested Remainder Subject to Open/Partial Divestment
A
- Remainder is given to a class of people
- One must be alive to equal a class of people (at the time of conveyance)
I convey Greenacre to Bob, then to Bob’s Kids
9
Q
Vested Remainder Subject to Total Divestment
A
If a person’s interest can be wiped out
With vested remainders subject to divestment, it is certain who the property will go to (that person has a vested interest), but there is a condition that could happen after B takes possession of the property that would make someone else then have the property.
To A for life, then to B, but if B ever uses the property for commercial purposes, to C. B has a vested remainder subject to total divestment.
Difference from a contingent remainder
On the other hand contingent remainder is where it is not certain who the property will go to until the current possessor loses possession- there is a contingency that determines who the estate will pass to.
A future estate with some uncertainty - either in the identity of the possessor (“then to my children” leaves uncertainity as to how many children there will be) or if the person will actually take the estate (“to my son, unless he moves away”).
10
Q
Ownership
Fee Simple Determinable
A
“so long as” or “as long as”
Note: I convey green acre to you as long as you use it as a museum. I convey Green acre to so long as you use it as a farm.
11
Q
Ownership
Possibility of Reverter:
It goes with what:
A
Automatically reverts to grantor if condition is not met
Goes with Fee Simple Determinable: so if you don’t use it the way it was supposed to use
12
Q
Ownership
Fee Simple Subject to Condition Subsequent
A
- If a future event occurs, then grantor has a right of reentry (grantor gets it back)
- “but if”
13
Q
Ownership
Is a right to reentry automatic
What does a right to rentry go with
A
No, Grantor must act to get the land back (not automatic)
Fee simple subject to a condition subsequent
14
Q
Ownership
Rule Against Perpetuities
A
Interest must vest within 21 years of the life in being
When you see a math question: can you figure out if the interest could vest (you could get it) within 21 years after that life and being. Is john getting the property within those 21 years. If yes then RAP does not apply. If you can’t tell, then it violates RAP.
The reading Comp answer you can get right for rap: Normally it will say I convey greenacre to you, as long as you use it as a museum, but if you stop using it as a museum, then to Bob and his unborn children. Fee simple determinable, but it goes to a subsequent grantee after fee simple determinable or condition subsequent then that violates rap. If interest goes to subsequent grantee after a condition subsequent or a fee simple determinable rather than the grantor, it violates rap.Then it goes back to it being a fee simple determinable that reverts back to grantor or a fee simple subject to condition subsequent that reverts back to teh contract.
15
Q
Ownership
Joint Tenancy:
A
- two or more people having an undivided interest in the whole property
- Right of Survivorship (heirs don’t get it, other cotenant gets dead persons interest)
- Trumps a will
16
Q
Ownership
Can you convey your interests to someone else (not the joint tenant_
Conveyance does what to a Joint Tenancy
A
Yes, you don’t need permission or anything else
Severs a Joint Tenancy to Tenancy in common
17
Q
Ownership
Tenancy in Common:
A
No right to Survivorship (so other tenant doesn’t automatically get it when you die)
Heirs get property
18
Q
Ownership
Can a tenancy in common ever revert back to a Joint Tenancy
A
No
HypoOther CoTenant can convey it to another person, and then that person to another person, and then thaty person to another person, and that person to X.
X and you still have a tenancy in common
19
Q
Ownership
Tenancy by the Entirety:
A
- Joint Tenancy between married people
- Right of Survivorship (other spouse gets it)
- No Conveyance without consent
- Severed by divorce
20
Q
For Joint Tenancy, tenancy in common, or Tenancy by the Entirety is the other tenants liable for the personal debt of another.
A
No, but the bank could force a sale.
21
Q
Ownership
Partition
A
- When one Co-tenant seeks for the Court to Divide property in two
- Granted unless not practical
22
Q
Ownership
Does each Co-Tenant have a right to the entire property
A
Yes, unless ouster occurs.
Ouster occurs when someone knowingly prevents a landowner from entering or using all or part of their property
23
Q
Ownership
Contribution-Taxes and Mortgage
A
- Co-tenant may seek contribution
- But if that tenant is in Sole possession - Only recover amount that exceeds market value
24
Q
Ownership
Contribution - Rent
A
- Out of possession co-tenant may share in rent and profits
- but can’t deman rent from a tenant in possession
- Unless they are damaging the property
25
Ownership
Contribution- Repairs and Improvements
* No Contribution from other cotenants for Repairs, unless necessary and requested
* No Contribution for Improvements, unless increase in rent or profits
26
Landlord/Tenant
Periodic Tenancy
* Start date - An no end date
* Renews unless a termination date
* Notice required to terminate\*
\*In a month to month situation, they must give you a month. In a year to year lease, they must give you 6 month notice
27
Tenancy for Years
* Typical Start date - An end date
* NO notice required
28
Tenancy at Will:
* Terminable at Will
* Reasoanable amount of time to terminate
29
Tenancy at Sufferance:
* Holdover Tenant
* Terminates by leaving or eviction
* Rules are whatever it originally was in the first place, before they stayed too late
30
Landlor duties:
* Actual physical possession of property on that first day of lease term
* Duty for basic repairs
* Warranty of Habitability- Not to violate any health or safety codes. or So oppresive that person could not live on the land (obviously not have AC for a day is not this)
* Warranty of Quiet Enjoyment-Stopping other tenants nuisances so you can leave peacefully on the land (can't be an inconvenience...so oppresive that person could not live on the land).
Tenant can obviously refuse to pay rent and obviously need to give notice for the warranties
31
Tenant Duties:
* Duty to Pay Rent (Obviosly does not need to pay if Landlord does not fulfill his duties or the property is destroyed)
* Cannot commit waste - Physical destruction of property or allowing property to be destroyed (like mildew getting worse), of if there is something that you can't handle have to notify owner.
* Tenant has duty to make ordinary repairs. Like turning a handle toprevent mildew.
32
Assignment:
* Assign the rest of the lease term
* New tenant primarily liable
* Original tenant secondarily liable unless novation
33
Sublease:
* Give away a portion of lease
* Original tenant liable unless novation
34
How is a covenant against assignment or sublese construed
Strictly construed
35
If the new landlord wants checks sent to him, what must he do.
Give you notice
36
Fair Housing Act:
* Federal law prohibits discrimination in sale/rental
* Race, color, religion, sex, disability, family status (including having kids under 18), pregnancy
RCRSDFP
37
Fixtures:
* Chattel affixed to property
* So affixed Removal would cause damage
38
Conflict of Laws:
Law of the state where property is located will apply, unless document, deed, or contract says otherwise.
If the action is not directly about the land itself, like a mortgage (collateral) then you go by whatever local law or wherever the hypo tells you
39
Exception to conflict of laws being settled by the law of the state the property is in
1. Choice of law clause
2. Collateral issues use local law
40
Real Propery-Rights in Land (Not title)
Easement:
The right to use someone else's land
41
Real Propery-Rights in Land
Creation of an Easement
1. Writing
2. By prescription- Looks like adverse possession, but not for title. Come to your land and use it a certain way for the statutory period
3. By implication
4. By Necessity
42
Elements for Prescription (easement)
Same as adverse possession
1. Adverse (without the consent of the owner, and in conflict with the owner’s property interest). This is sometimes called hostile
2. Actual, Open and Notorious (must have actually used the property, and that his use was visible enough to give the owner actual or constructive notice)
3. Continuous and uninterrupted( must establish they have used the property continuously for the statutory time period, but continuously does not mean constant)
4. NO EXCLUSIVe USE ELEMENT
5.
43
Easement by Implication
An easement that is not created by express statements between the parties; but as a result of surrounding circumstances that dictate that an easement must have been intended by the parties.
Prior Use: If property that is owned by a single person is split and one part is sold. The implication is that you should be able to do whatever you did beforeby (walk accross other property to get to your land). It is implied from prior use.
44
Easement by necessity
When Would it terminate
I need to use your property, because I have no other way of getting to my land
Ex. Dea end street, only way for me to get onto the main street is by using your land
If there is a new way to get to your land. Like city bulldozes a way.
45
Easements can be positive or negative, what is the difference between the two?
Positive: Grant you the right to do something
Negative: Prevent you from doing something
46
Real Propery-Rights in Land
How long will an easement last?
Forever, unless it is terminated
Like the easement by necessity. Terminated when you have another way into your property.
passage of Time or different owners don't matter.
47
Real Propery-Rights in Land
Easements are terminated by:
1. Agreement to terminate
2. Time- Can set it up so the easement only lasts a certain amount of time
3. Merger-Buy the property with the easement. If you own both pieces of land there is no easement on your own property. Going forward there won't be an easement
4. Abandonment- Leave and show an intent not to return\*
\*nonuse is not enough
48
Real Propery-Rights in Land
Covenants:
What is it and Two types
* Promise for a promise (Looks like a contract and governed by contract principles)
* Always created by writing (easement is created in different ways)
* If the agreement runs with the land (go with the property) then it Generally lasts forever
Can be positve: I promise to let you do something on the propertt
Restrictive Covenant: You can only use the land in a particular way. You can't come within 100 feet of my rosebushes.
49
Real Propery-Rights in Land
A convenant "runs with the land" if:
1. A Writing
2. Intent between the original parties
3. You must have notice (to the successors)
4. Privity (Don't worry for MBE)
5. Covenant Touches & Concern the land (not personal, it is about the use of the property
Example of touch and concern. I hav a restricted covenant that says you can't touch my rosebushes. Owner of the covenant sells the covenant. Then it touches and concerns the land because the covenant goes with the property.
Personal would be like I allow you to use my pool because you are an olympic swimmer. This is personal in nature to you. Allow to use BBQ grill because you are vegan. That's personal. Next person is not going to be allowed to use grill. So does not touch and concern the land
If you get another lease in the same land, that lease won't have the same covenants as the old one (Contractual relationships)
Default rule is that 99.99% covenants will run with the land
50
Real Propery-Rights in Land
Equitable servitude:
* Looks like a restrictive Covenant, but not seeking damages
* Seeks Equitable Relief: Injunction
I want you to stop doing something, not get money.
51
Real Propery-Rights in Land
Implied Reciprocal Servitude:
As long as restrictions are Common Scheme (against everybody) & Notice, then they will be enforceable. Restrictions will continue even if there is a change in the community as long as the profile, the character of the community stays the same (More people not enough to end restrictions)
Total change is like started out as residential and now it is all retail shops
Large track of land that's divided up into 50 or 100 lots and there are restrictions against all of the lot owners (like a gated community)
52
Real Propery-Rights in Land
License:
* Right to enter
* Freely revocable by grantor
* UNLESS coupled with an interest
Example sports ticket.
53
Real Propery-Rights in Land
Profit:
Right to enter the land and take something off the land
Drilling and mining etc.
54
Real Property-Rights in land
Taking:
1. Govt. taking private property for public use
2. Requires just compensation (fair market value)
55
Real Property-Rights in land
Water Rights:
1. Reasonable use of water (lake,pond, river) if it affects you (so you
2. Reasonable amount of water (lake,pond, river)
3. Reasoanable means to alter flow of rain/snow even if it could harm you a little bit
56
Real Property-Rights in land
Crops:
Does it go with grantee?
What are the two types
Generally goes with the property
* Natural: "real property"
* Man-made: "personal property"
57
Real Property-Rights in land
Crops go with the property Exceptions:
1. Express agreement to keep it
2. If there is a tenancy and Tenant has right to harvest (before tenancy ended)
58
Real Property-Rights in land
Adjoining undeveloped property:
Strict Liability for damage
Adjoining undeveloped property and I am doing something in my property that damages yours
59
Real Property-Rights in land
Adjointing Developed Property:
* Strict liability if damage would have happened anyway
* Or else Negligence when it wouldn't have happened anyway
Adjoining developed property (building on it) and I am doing something in my property that damages yours
60
Real Property-Rights in land
Digging on Adjoining Land (gave them right to do that):
Negligence for damage
61
Real Property-Rights in land
Private Nuisance:
1. Unreasonable interference with use and enjoyment of your property
2. Reasonable person standard (objective standard)
Weird allergy or sensitivity then it is not going to be a nuisance
62
Real Property-Rights in land
Public Nuisance:
* Effects public at large
* Private plaintiff must prove special damages (some kind of unique harm)
63
Real Property-Rights in land
Common interest owned Community:
Lot owners must pay dues to an association
64
Real Property-Rights in land
Property Owners Association:
A common interest owned community where Owners required to belong to association and pay dues
65
Real Property-Rights in land
Condominium:
* 2nd type of Common interest owned communtiy
* Created by statute
* Must file a declaration and plat
declaration=piece of paper=master deed - Piece of paper settin forth all teh rules by which teh condo will be governed and declares each owners share
plat=description of physical boundaries of the units, as well as all the common area
66
Real Property-Rights in land
Condominium Owners:
* Pay taxes, insurance, mortgate for their unit
* Own common areas as tenants in common ( and pay fee for maintenance)
* Cannot separate ownership of unit and common areas
67
Real Property-Rights in land
Co-Op:
* Corporation owns building and leases units to shareholders
* One Mortgage on Whole Property (failure to pay affects all owners)
* Tenant pays share of fee for taxes & Mortgage
68
What are governing Documents for a common owned community
What is given the most weight
Declaration +bylaws+articles of incorporation+Rules and regulations adopted by association
The most weight is given to the declaration
69
Real Property-Rights in land
Developer:
* Developer gives power to Association
* Association has 2 years for 2/3 vote to terminate developer
* Developer cannot change declaration (unless stated)
70
Real Property-Rights in land
Boards:
Acts on behalf of Association to manage teh community. Board has power reasonably necessary to run the association
71
Real Property-Rights in land
Forming a Common Interest Owned Community:
* Declaration
* Association
* Board
* Developer
72
Real Property-Rights in land
Rules:
Must be "reasoanbly related to further a legitimate purpose" of the Association. Can't discriminate against individual owner. Have to look for the greater good.
73
Real Property-Rights in land
Powers of the Community (through the board):
Reasonably necessary to manage the property (Just read)
* Levy assessments and fees
* Manage/improve common areas
* Create Rules
* Impose Rules
* Impose Fines
* Conduct Reasonable inspections
* Revoke privileges
* Litigate as the Association
* CRIM CI LL
74
Real Property-Rights in land
Dutites of the Community (throught the board):
* Treat members fairly (duty of good faith\_
* Ordinary care in maging property/finances
* Reasonable access to information
75
Real Property-Rights in land
The burden to prove breach by the Association lies on
The members
76
Real Property- Rights in Land
Duties of Board Members:
* Act in good faith
* Standard of care: an ordinary director of a common interest owned community
* Board members not jointly/severally liable
77
What two pieces of papers are necessary to convey title
1. The real estate contract
2. The deed
78
Real Property-Contracts
Statute of Frauds:
1. Contracts MUST be in writing, or
2. Part Performance takes you out of the statute of fraud: Payment and Improvements/Possession
SOF card will have more info
79
Contracts-Real Property
A real estate contract (the first piece of paper you need to buy property) needs what terms:
1. Price
2. Parties
3. Description
4. Any Conditions
5. Signed by party to be charged
80
Equitable Conversion:
The day you sign the contract, are you transferring legat title?
Who does risk of loss shift to?
* Transfer of equitable title not legal title
* Risk of loss shifts to the buyer
81
Contracts-Real Property
Does the seller need legal title on day of signing
Seller does not need legal title on day of signing.
Needs it on the day of closing. Gets Equitable title.
82
Contracts-Real Property
Marketable title
Implied covenant to convey title free of encumbrances in a REAL ESTATE CONTRACT (don't think about the deed)
Any lien, mortgage, any zoning violation will breach that implied promies to convey marketable title. Free of any encumbrances or liens.
83
Contracts-Real Property
Is time of the essence for Real Property contracts
Time is not of the essence unless stated
84
Contracts-Real Property
Merger:
* At closing, the contract merges into the Deed (all the conditions in the contract now apply to the deed)
* Can no longer sue under the contract
85
Contracts-Real Property
Seller has a duty to disclose:
Material defects that cannot be seen by the buyer
86
Mortgages
Purchase Money Mortgage:
* Money used to purchase the property
* Always gets priority
Example they might have 3 different loans and use the house as collateral. Loan one is the original to pay for morgage. Loan 2 is for building a new improvementa and Loan 3 is to pay for law school. The purchase money mortgage gets paid first.
87
Mortgages
What is redemption and what are the two types
Paying off debt to prevent foreclosure
Two types
1. Equitable Redemption
2. Statutory Redemption
88
Mortgages
Equitable Right of Redemption
* Time from Notice of foreclosure proceedings to Sale that you can pay off the debt to prevent foreclosure
* Can Never Waive this right
89
Mortgages
Statuory Redemption
Period of time AFTER foreclosure sale that you are allowed to pay loan to prevent foreclosure. Lenght depends on statute. This is not automatic.
90
Mortgages
Jurisdiciton has Lien Theory:
In a lien theory state
* Bank only has a lien on the property
* Owner holds TITLE and can do whatever they want with the property
* Owner can sell
Note: lien is obviously removed when you pay off the mortgage
91
Mortgages
Jurisdiction has Title Theory on Mortgages
* Bank hold Title (bank owns the property)
* Owner only has equitable interest
* Owner cannot sell without bank consent
Note: Obviously you get title when you pay off the mortgage
92
Mortgages
Joint tenancy under Lien theory and under Title Theory
* Lien Theory: Mortgage does not sever
* Title theory: Mortgage SEVERS into tenancy in common
Hypo is you have a Joint tenancy and they both take out a loan to improve property. Under lien theory jurisdition, it does not have an effect to the property. Under a title theory the morgage severs the tenancy in common since we are conveying interest to bank.
93
Mortgages
Assume the Morgage:
vs.
Subject to a Mortgage
Assume the Mortgage
* New buyer takes over payment (if assumable)
* Original owner secondarily liable unless novation
Subject to a mortgage -
* You agree not to pay antything
* Original party has to keep paying mortgage
* **However,** bank can foreclose if no payment made
(happens when the house is worth less then what you paid for it) So get less when you sell it and still on the hook for the mortgage.
94
Mortgages
Deed in Lieu of foreclosure:
Sign deed to bank and skip foreclosure proceedings (can be lenghty)
95
Mortgages
When there is a foreclosure sell and multiple loans on the property. Any loan after the forclosure sale will be:
What must be given for this to happen
What happens to Mortgates taken out before foreclosure:
Mortgages taken out AFTER foreclosure sale are wiped out:
1. Must be given notice
2. They Joined to suit
Buyer takes subject to and original guy is still on the hook
96
Mortgages
Deficiency Judgment:
Collect the remaining money not recovered by foreclosure sale from the original person.
97
Mortgages
Installment Land Contract
* No title until all payments are made
* Seller can take back after default (unless foreclosure proceeding rules that would prevent that)
98
You might get a nighmare question where there is up till eight mortgagees and you don't know the answer to. How do you pick the right answer
If the question is talking about one of the mortgagees, pick the answer with the fact pattern taling that deals with that mortgagee. Simple as that.
99
Title to property
Deed:
Transfers legal title on day of closing (the day you sign the deed)
100
Title to property
Present Warranties:
would be Breached on the day of closing
1. Seisin - Promising that I actually own the property
2. Right to Convey - Legal right to convey title
3. Covenant against encumbrances - Warranty that there are no encumbrances
101
Title to property
Future Warranties
Last Forever
4. Quiet Enjoyment - Grantee will not be bothered by any future claims
5. Warranty - THat person selling will defend any claims that happen to come up aganst you in the future
6. Further Assurances- I promise to fix any defect in titles
102
Title to property
General Warranty Deed
Promise for all 6 warranties since property developed/created
103
Title to Property
Special Warranty Deed:
Promise for all 6 warranties since seller had title
104
Title to property
Quitclaim Deed
No Promises regarding title.
Can't sue me, because I never promised you anyithing
105
Title to property- Formalites at closing to transfer legal title
Does the Dee have to be in writing
yes, to satisfy the statute of Frauds
106
Title to property- Formalites at closing to transfer legal title
Delivery of Deed:
intent to deliver= delivery
All you have to do is show intent to delivery the deed
107
Title to property- Formalites at closing to transfer legal title
Acceptance of Deed:
Presumed unless rejected
108
Title to property- Formalites at closing to transfer legal title
Does the deed need identifying grantees
Yes, this is a formality. You must know who you give the grantor gives it to.
109
Title to property- Formalites at closing to transfer legal title
Merger:
At closing the contract and Deed Merge. The contents of the real estate contract, obligations, conditions are governed by the deed itself.
110
Title to property- Formalites at closing to transfer legal title
Description of the property
Must be "reasonably definitve"
metes and bounds description
111
Can you transfer property by will
Yes, and if no will intestate succession
112
Title to property
Lapse:
Leave property to beneficiary, but that beneficiary dies than land will go into the residuary state
113
Title to property
Ademption:
Leave you land in the will, but sold it to someone else. Better luck next time.
114
Title to property
Exoneration of liens:
If i give you a property with liens or encumbrance, generally the estate will pay the amount of money to clean up title.
115
Title to property
Adverse Possession:
Acquire legal title if:
1. Continuous - possession through the statutory period (tacking is allowed)
2. Actual, Open and Notorious-must have actually used the property, and that his use was visible enough to give the owner actual or constructive notice
3. Hostile or Adverse -(without the consent of the owner, and in conflict with the owner’s property interest).
4. Exclusive- Not sharing it with true owner
116
Title to property
Tacking:
The process whereby an individual who is in Adverse Possession of real property adds his or her period of possession to that of a prior adverse possessor.
While possession over a piece of land must be continuous for the statutory period, the possession doesn't always need to be by the same person in order to support an adverse possession claim.
117
Title to property
Who can draft and review Documents:
* Non-attorney can draft documents (prefilled form usually)
* But not give legal advice
118
Equal dignity Rule:
* Agent may sign deed on behalf of grantor
* need permission in writing
119
Title to property
Exceptions-Equal Dignity Rule (may sign deed without writing by principal)
When is lack of writing not a defense
Writing is not required
1. Officer of Corporation with authority
2. signign agent in presence of principal
3. Signing by agent is a formality
Can't use lack of writing as defense if tried to induce reliance- Grantor is estopped if he tried to induce reliance
120
Title to property-Recording statute
What are the types of recording statutes
What will words will show a recording statute
* Race
* Notice
* Race notice
When do I know I'm dealing
"No conveyance shall be good against..."
BUTA lot of times the recording statute is not relevant to the question being asked
Example Bob sells green acre to different people and also takes out a mortgage on different days. MORTGAGE/SELL/CONVEY. These are the questions where a reporting statute will be important
121
Real Property-Title to Property
What is Bona Fide Purchaser:
What are the ways that you could have acquired title but not have paid
1. Pay for Property (pay for value)
2. Take property without notice (not know that any shenanigans was going on)
* Notice= may be recording your deed or something else like putting in a newspaper
1. Gift
2. Will
3. Adverse Possession
Note Creditor is not a BFP, but mortgagees are (you'll see this in another card)
122
Title to property
Notice statute:
* Key words: No conveyance shall be good against a "subsequent purchaser for value without notice" (SO A BFP WITHOUT NOTICE)
* Last Bona fide purchaser prevails
Example: On monday I sell to bob who doesn't record. On tuesday I sell to Marissa who doesn't record. and on Thursday I sell to John who wins in a notice jurisdiction. John does because he is the last bonafide purchaser
123
Title to property
Are creditosr Bona FIde purchasers
What about Mortgagees
Creditors are not Bona Fide Purchasers
Morgagees are Bona Fide Purchasers
124
Title to property
Race Statute:
First person to record prevails
"No conveyance shall be good aganist whoever first recorded" NO BFP language
125
Race Notice Statute
First Bona Fide Purchase who recorded wins
key words: "first recorded"
126
Title to property
Shelter Rule
One who takes from a BFP will prevail against anyone the transferor-BFP would have prevailed against
O gives to A on Monday and don't record. Then O gives to B on Wednesday and he records. B gives property to C as a gift.
C is going to win even though not bonafide purchaser. C is sheltered by B. A couldn't beat B. Everyone that comes after B will also be a bonafide purchaser.
127
Title to property
Wild Deed:
A recorded deed outside the chain of title
Monday O conveys to A and doesn't record. **Then A to B.** Then O to C. C will never know that O is the original grantor. Wild deed because C will have no notice of O's transaction with A. C would win becaus A to B is a wild deed
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Title to Property
After-Acquired Title:
If Grantor acquires title after closing, title will pass AUTOMATICALLY to grantee...some weird glitch but there was intent
