The Recording System Flashcards
(31 cards)
Describe a notice recording statute.
If B is a bona fide purchaser, B wins, regardless of whether or not she records before A.
Describe a race-notice statute.
If B is a bona fide purchaser, B wins if she records properly before A does.
Which two groups of people are protected by recording statutes?
BFPs and mortgagees
A BFP is one is . . . (2)
Buys Blackacre for value;
w/o notice that another got there first
B paid $50k cash for BA, when its FMV is estimated at $100k. Is B a purchaser for value? Explain.
Yes,B remitted substantial pecuniary consideration
What is the rule regarding “bargain sales” and BFP?
A bargain sale buyer is still a BFP as long as he remits “substantial pecuniary consideration”
O sold to A, then bequeathed to B. In a recording statute question, B . . .
Loses
UNLESS the Shelter Rule applies.
What are the three forms of notice with which a buyer may potentially be charged? Pneumonic?
AIR
Actual
Inquiry
Record
Whether he looks or not, B is on inquiry notice of . . .
Whatever an examination of the land would show.
If a recorded instrument makes reference to an unrecorded transaction, grant is on inquiry notice of . . .
Whatever a reasonable follow up would have revealed.
B is on record notice of A’s deed IF at the time B takes . . . .
A’s deed has been recorded properly.
Which sort of statute? “A conveyance of an interest in land shall not be valid against any subsequent purchaser for value, without notice thereof, unless the conveyance is recorded.”
Notice
Under a Notice statute, what is the only thing B must do in order to take?
Be a BFP before A records.
Under a notice statute, what result if O conveys to A, then conveys to B (BFP), then A records. B fails to record. Explain.
Land to B.
If at the time B takes, he is a BFP, he wins. It won’t matter that A ultimately recorded first. Nor does it matter that B never recorded.
Which sort of statute? “Any conveyance of an interest in land shall not be valid against any subsequent purchaser for value, without notice thereof, whose conveyance is first recorded.”
Race-notice.
Two requirements to win under a Race-Notice statue?
BFP
Record first.
On March 1, O conveys to A (BFP). A does not record. On April 1, O conveys the same parcel to B (BFP) who does not record. On May 1, A records.
Who takes in N jurisdiction?
Who takes in RN jurisdiction?
B in N
A in RN
How can A always defeat a subsequent purchaser? Explain
Simply record before B takes.
If A records, B is put on record notice and is thus precluded from BFP status.
To give record notice to subsequent takers, the deed must be recorded properly within . . .
The Chain of Title
The chain of title refers to what?
The sequence of recorded documents capable of giving record notice.
In most states, how is the chain of title established?
Grantor-grantee index.
What are the three primary chain of title problems?
The Shelter Rule
The Wild Deed
Estoppel by Deed
What does the Shelter Rule say?
One who takes from a BFP will prevail against any entity that the transferor-BFP would have prevailed against. In other words, the transferee takes shelter in the status of her transferor, and thereby steps into the shoes of the BFP EVEN THOUGH she otherwise fails to meet the requirements of BFP status.
O conveys to A, who does not record. Later, O conveys to B, a BFP, who records. B then conveys to C, who is a mere donee (or who has actual knowledge of the O to A transfer). In the contest of A v. C, who wins in a Notice Juris.? In a Race-Notice Juris.?
Explain
C wins in both.
Under the Shelter Rule, C steps into the shoes of B, who was a BFP who recorded first.
