Recording Statutes and Notice

Question 1

What is the first in time first in right rule?

Answer 1

Under the common law, if a grantor transfers the same piece of property to multiple grantees, the first grantee to receive the deed acquires rightful title. In the absence of a recording statute, the common law rule controls.

Question 2

True or False: Has every state adopted a recording statute that modifies the common law first in time rule?

Answer 2

True

Question 3

What are the three types of notice?

Answer 3

1) Actual notice
2) Constructive notice
3) Inquiry Notice

Question 4

What is actual notice?

Answer 4

A subsequent purchaser has actual notice when he has personal knowledge of a prior interest.

Question 5

What is constructive notice?

Answer 5

A subsequent purchaser is on constructive notice when the prior interest is recorded.

Question 6

What is a wild deed?

Answer 6

If a deed is not recorded properly, it is considered a wild deed. (outside the chain of title).

Question 7

Does a wild deed put subsequent purchasers on constructive notice?

Answer 7

A wild deed does NOT put subsequent purchasers on constructive notice.

Question 8

What are the three types of recording statutes?

Answer 8

1) Race statutes
2) Notice statutes
3) Race Notice statute

Question 9

What is a race statute?

Answer 9

The first grantee to record acquires title, regardless of notice.

Question 10

What is a notice statute?

Answer 10

A subsequent purchaser acquires title if the purchase is made WITHOUT notice of a prior unrecorded conveyance.

Question 11

What is a race notice staute?

Answer 11

A subsequent purchaser acquires title if:
1) The purchase is made WITHOUT notice of a prior unrecorded conveyance; AND
2) The subsequent purchaser records first