Recording System Flashcards
Function
a. Establishes a system of public recordation of land title.
b. Protects purchasers for value and lien creditors against prior unrecorded interests.
CL
priority of title was determined by priority in time of conveyance
ML
under the recording acts, a subsequent BFP is protected against prior unrecorded interests.
Types of Indexes
Tract – parcel identification number. Main issue was early eastern states were described by meets and bounds so no tract numbers. More time consuming.
Grantor-grantee (most common) – indexed alphabetically and chronologically under grantor’s surname.
How far back to look?
Depends on local custom and identity of client
Are you on notice of things that are unclear?
Must be sufficient description of the property as to provide constructive notice.
Doctrine of Idem Sonas
Majority rule – spell it right, or else
Minority rule – names like that of the recorded may provide constructive notice
Shelter Rule (only applies to BFPs)
Subsequent grantee is sheltered under his grantor’s previous superior claim under the recording statute. Applies in all jurisdictions.
Quitclaim deeds
Majority – they are legitimate transfer, it does not trigger inquiry notice
Minority – purchaser of a quitclaim deed cannot claim the position of a BFP w/o notice
Inquiry Notice
Actual - aware
Constructive – law deems you to have, properly recorded
Inquiry – reasonable person to make inquiry based on facts
Grantees have
constructive notice of properly recorded
Marketable Title Acts
limit title searches to reasonable period. Typically 30 or 40 years
Exceptions: mineral rights, easements.
Foundational Deed Rule
foundational deed must be valid and recorded to protect the grantee of the subsequent deed
