The recording system

Question 1

Recordation-what is it?

Answer 1

the act of recording an instrument conveying an interest in the public registry

Question 2

Recording acts-def

Answer 2

Law that establishes the requirements for recording a deed.

Question 3

They solve dispute between….

Answer 3

competing grantees. An unrecorded instrument was void against a subsequent purchaser who took title without notice of the prior instrument

Question 4

Recording problems

Answer 4

1. Mother Hubbard clauses 2. Doctrine of Idem Sonans

Question 5

Mother Hubbard clauses

Answer 5

clause describing the prop to be conveyed as “all X’s prop in Z county” such that no specific reference to any land has been made. Not notice.

Question 6

Doctrine of Idem Sonas

Answer 6

If a misspelled name would be pronounce substantially the same way as the name spelled correctly, the variance is not material. There is notice.

Question 7

Types of recording acts

Answer 7

1. notice act 2. race act 3. hybrid act (notice/race)

Question 8

Notice Act

Answer 8

an unrecorded instrument is invalid against any subsequent purchaser or lender without notice of the prior instrument

Question 9

Race Act

Answer 9

An unrecorded deed or other instrument of title is invalid as to any other deed or instrument recorded before it. A SP who records first is protected against all prior purchasers

Question 10

Hybrid Act (notice/race)

Answer 10

An unrecorded instrument is invalid against any subsequent purchaser without notice of the prior instrument if the subsequent purchaser records his own instrument first

Question 11

Zimmer rule (applicable in NC)

Answer 11

To be protected the subsequent purchaser must not only record first, but all prior conveyances in his chain of title must also have been properly recorded.

Question 12

Types of notice (AIR)

Answer 12

1. Actual 2. Inquiry 3. Record or constructive notice

Question 13

Inquiry notice

Answer 13

Places obligation on subsequent purchaser or creditor in certain circumstances to make a reasonable investigation of the title beyond what is revealed in the public record. Two requirements: has to be suspicious fact about prop AND fact has to be discoverable by reasonable inquiry.

Question 14

Actual notice

Answer 14

knowledge in fact

Question 15

Record or constructive notice

Answer 15

knowledge that the law imposes to a purchaser or credit based on what appears in the record

Question 16

Types of instruments that have to be recorded

Answer 16

deed, mortgage, easement, restrictive covenants

Question 17

Types of instrument that have to be recorded in NC

Answer 17

instruments conveying a freehold interest in land, Ks to convey, options to convey, leases of real prop for terms of 3+ yrs, mortgage, deeds of trust, deeds of gift recorded within 2 yrs

Question 18

Subdivision-NC rule

Answer 18

every person that buys a subdivision has to search every deed out from the common grantor

Question 19

Subdivision-States divided

Answer 19

on whether deed from common grantor provides constructive notice to SPs of other lots in a subdivision

Question 20

Chain of title-Majority/NC rule

Answer 20

Only have to search from the time that the person took title until the time that they transferred title to someone else. If deed outside chain of title, wouldn’t provide constructive notice.

Question 21

Chain of title-Minority rule

Answer 21

If deed that is outside the chain of title and is recorded it should constitute constructive notice

Question 22

Estoppel by deed

Answer 22

If A later acquires title she is estopped from denying that she had title or transferred title to B

Question 23

Persons protected by recording acts

Answer 23

Subsequent purchasers for value (BFP); AND certain categories of creditors.

Question 24

Value means?

Answer 24

money or money’s worth. In NC not valuable consideration if the buyers and sellers of the land would say person got land for nothing

Question 25

BFP-Owner finance

Answer 25

Occurs when buyer only pays part of purchase price and seller agrees to let buyer pay rest over time.

Question 26

Certain types of creditors

Answer 26

lien creditors-mortgagees, banks, creditors who have documented their judgments

Question 27

Mortgage BFP-Maj view

Answer 27

One who takes a mortgage on property as security for a pre existing debt is not considered a purchaser for value

Question 28

Mortgage BFP-Min/NC view

Answer 28

One who takes a mortgage on the property as security for a pre existing debt is considered a purchaser for value

Question 29

Running the chain of title

Answer 29

1. Id who owned land for past 50 yrs 2. Register of deeds-indexing. Check Grantor and Grantee indexes 3. Check other places: Clerk of superior court (judgment dockets, pending litigations, guardianship records), marriage and divorce records, and estates office