THE RECORDING SYSTEM Flashcards Preview

Real Property > THE RECORDING SYSTEM > Flashcards

Flashcards in THE RECORDING SYSTEM Deck (29):
1

O conveys Blackacre to A. Later, O conveys Blackacre, the same
parcel, to B. O, our double dealer, has skipped town. In the battle of A vs. B, who wins if B is a bona fide purchaser?
In a notice jurisdiction?
In a Race-Notice jurisdiction?

1) If B is a BONA FIDE PURCHASER, and we are in a NOTICE jurisdiction, B wins, regardless of whether or not she records before A does.

2) If B is a BONA FIDE PURCHASER and we are in a race-notice jurisdiction,B wins if she records properly before A does.

2

Recording acts exist to protect what two sets of individuals?

Bona fide purchasers and mortgagees.

3

What is a bona fide purchaser?

A bona fide purchaser is one who buys blackacre for value and without notice that someone else got their first (at time of sale)

4

B paid $50,000 cash for Blackacre, when its fair market value is estimated at $100,000. Is B a purchaser for value?

Yes, as long as B remits substantial pecuniary consideration he qualifies as a buyer for value.

5

When do recording statutes protect donees, heirs, or devises?

When the shelter rule applies.

6

The three forms of notice that a buyer may potentially be charged with?
What does a buyer have a duty to do before transfer of title?

AIR
Actual- Prior to closing B learns of A
Inquiry- Whether he looks or not, B is on inquiry notice of whatever an examination of blackacre would show. (B has a duty to inspect)
Record- B is on record notice of A's deed if at the time B takes A's deed was recorded properly.

7

“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.” What kind of statute is this?

Notice Statute

8

If there is a notice statue, who wins A or B when B buys after A buys but before A records, but A records before B?

B wins if he is a bona fide purchaser, it does not matter if B never records.

9

Who wins in a notice statute state if there has been no recording by prior purchasers?

The last bona fide purchaser to enter wins.

10

“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.”
What kind of recording statute is this?

Race Notice Statute

11

In a race notice statute what must B do to win?

To prevail, B must
1) Be a bona fide purchaser
2) Win the race to record

12

On March 1, O conveys to A, a bona fide purchaser who does not record. On April 1, O conveys the same parcel to B, a bona fide purchaser, who does not record. On May 1, A records.
1) Who takes Blackacre in a notice jurisdiction?
2) Who takes in a race-notice jurisdiction?

1) B, the last BFP to enter wins
2) A, the BFP who wins the race to record.

13

if A promptly and properly recorded before B takes..
1) what is the result in a notice jurisdiction?
2) in a race-notice jurisdiction?
why?

A wins in both.
A’s proper recordation puts B on record notice thereby defeating his status as a bona fide purchaser.

14

To give record notice to subsequent takers, the deed must be recorded properly, within what?

the chain of tittle

15

What does the chain of title refer to?

chain of title refers to hat sequence of recorded documents capable of giving record notice to later takers.

16

In most states, the chain of title is established through a title search of what?

the grantor grantee index

17

What is the Shelter Rule?

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.

18

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 vs. C, who prevails?
In a notice state?
In a race-notice state
why?

C wins in both a notice and race-notice state, because of the shelter rule. C steps into the shoes of B who was a BFP who recorded first.

19

Who does the shelter rule protect and for what purpose?

a bona fide purchaser to make it easier for B to transfer successfully.

20

O sells Blackacre to A, who does not record. Then, A sells to B. B records the A-to-B deed.
What kind of deed is this?

A wild deed.
Although recorded, is NOT connected to the chain of title, because the O to A link is missing from the records.

21

What is the rule of the wild deed?

If a deed, entered on the records, has a grantor unconnected to the chain of title, the deed is a wild deed. It is incapable of giving record notice of its existence.

22

What makes a deed wild?

although recorded, is NOT connected to the chain of title.

23

What is the consequence of a wild deed?

It is not connected to the record chain of title, it would be as if you never recorded yourself.

24

O sells Blackacre to A, who does not record. Then, A sells to B. B records the A-to-B deed. O, our initial grantor, then sells Blackacre to C. Assume that C has no actual or inquiry knowledge of the O-to-A or A-to-B conveyance. C records.
O has skipped town. In the contest of B vs. C, who prevails?
in a notice state
in a race-notice state?
Why?

C wins.
In both a notice and race-notice state. C wins in a notice state because at the time C takes she is a bona fide purchaser.

C wins in a race-notice state because she is a BFP who wins a race to record. B's recording is a nullity because although recorded it is improperly recorded, B should have insisted that O-->A be recorded.

25

In 1950, O owns Blackacre. He is thinking about selling it to X, but for now decides against it. In 1950, X, who does not own Blackacre, sells it anyway, to A. A records.

In 1960, O finally sells Blackacre to X. X records.

In 1970, X, a double dealer, sells Blackacre to B. B records.

1) As between X and A, who owned Blackacre from 1960-1969? Why?


1) 1960-1969 A owned blackacre because of the rule of estoppel by deed

26

In 1950, O owns Blackacre. He is thinking about selling it to X, but for now decides against it. In 1950, X, who does not own Blackacre, sells it anyway, to A. A records.

In 1960, O finally sells Blackacre to X. X records.

In 1970, X, a double dealer, sells Blackacre to B. B records

Who owns Blackacre in 1970 in a notice state? Why?.

B, as long as he is a bonafide purchaser
B wins in a notice system because he is a BFP.

27

In 1950, O owns Blackacre. He is thinking about selling it to X, but for now decides against it. In 1950, X, who does not own Blackacre, sells it anyway, to A. A records.

In 1960, O finally sells Blackacre to X. X records.

In 1970, X, a double dealer, sells Blackacre to B. B records

Who owns Blackacre in 1970 in a race-notice state? Why?

B, as long as he is a bonafide purchaser
B wins in a race-notice system because he is a BFP who wins the race to record.

28

In 1950, O owns Blackacre. He is thinking about selling it to X, but for now decides against it. In 1950, X, who does not own Blackacre, sells it anyway, to A. A records.

In 1960, O finally sells Blackacre to X. X records.

In 1970, X, a double dealer, sells Blackacre to B. B records.

What is the effect of A's 1950 recording? Why?

A’s 1950 recording is a nullity. A recorded too early. B’s title searcher would not find A’s deed. Why not? Because one is entitled to assume that no one sells land until they first own it. Thus, B’s title searcher would not discover X’s 1950 pre-ownership transfer to A.

29

What is the rule of estoppel by deed?

One who conveys realty in which he has no interest, is estopped from denying the validity of that conveyance if he later acquires the previously transferred interest