Ass. 48-49: The Recording Acts Flashcards
what are the three recording acts jurisdictions
- Notice jurisdiction
- Race-notice jurisdiction
- Race jurisdictions
race recording act
- in determining the priority of conflicting interests in land, the first such interest to have been recorded shall have priority
- No requirement that the second purchaser take w/o notice in order to get protection
if O sells to A then to B, whoever records first will win
race recording act
No conveyance of land shall be valid to pass any property interest as against lien creditors or purchasers for a valuable consideration from the donor… but from the time of registration thereof
Race recording act
notice recording act
- No conveyance of real property is effective against a subsequent purchaser for value and w/o notice unless the same is recorded
- Notice may be actual or constructive
If O sells to A and then to B, but B did not know about the prior sale and the sale wasn’t recorded, B will win
notice recording act
(BFP w/o notice will prevail)
No conveyance/ transfer/ mortgage shall be good an effectual in law or equity against creditors or subsequent purchasers for a valuable consideration w/o notice, unless the same be recorded
notice recording act
race-notice act
- No conveyance or mortgage of real property shall be good against subsequent purchasers for value w/o notice, who shall record first
- Second purchaser won’t win unless she both takes w/o notice AND records first
If O sells to A, and then to B, but B did not know about the prior sale, and B recorded his sale first, B will win
race notice
Every conveyance … which shall not be recorded … shall be void against any subsequent purchaser in good faith and for a valuable consideration… whose conveyance shall be first duly recorded
race-notice
what are the most common recording acts?
notice and race-notice
what will suffice for constructive notice?
Any recorded instrument of conveyance, usually a deed or a mortgage will give constructive notice
constructive notice for recording acts
Implied by law and is not dependent on actual notice or notice of facts from which knowledge of an unrecorded instrument would be implied, or on whether or not the buyer actually conducted a title search
A coveys to B who records his deed. A then executes a deed to C. C pays full value in good faith and has no actual notice of the former deed to B.
carl is not a bfp as a matter of law bc he is bound to examine the records therefore since B recorded, C has contructive notice whether or not he actually searched the title
inquiry notice
The knowledge of the prior conveyance that is gained either
1. By further inquiry into facts that are known or should be known, and that would alert a rsbl person to inquire further to guard herself against the possibility of a prior grantee
2. By inspection of the property bc a subsequent purchaser has a duty to inspect the property she is purchasing
what does purchaser refer to?
Purchaser refers to purchaser of a legal interest in property
subsequent purchaser
A subsequent purchaser acting in good faith and w no actual knowledge of a former conveyance, is normally entitled to rely on what appears on the records
what does it take for the deed to be duly recorded?
The instrument must be properly executed, acknowledged in most jurisdictions, and w/in the chain of title as a condition precedent to being considered properly recorded
what would happen if the instrument of conveyance was void?
An instrument of conveyance that is void for reasons such as forgery or lack of delivery is ineffective for any purpose, and recording it has no legal effect
relation of the recording acts to adverse possession
The recording statutes have no application to a title procured by adverse possession or prescription
chain of title
the regular series of recorded instruments – each grantee becoming a subsequent grantor
proper recording means
- an instrument in the direct chain of title, or
- a recital in an instrument in such direct chain of title
Recording statutes give protection to 2 persons only
- BFP or encumbrancer
- One who claims through such a BFP or encumbrancer
In order to be a BFP purchaser protected under the recording act, one must
- Be subsequent
- Pay value
- Be w/o notice
- Be of good faith
recording acts do not protect…
recording statutes generally do not protect a subsequent claimant who has not paid more than nominal consideration; nor one who takes w either actual or constructive notice of a prior interest
Recording acts generally afford purchasers either no or inadequate protection against the following:
- Forged and other void deeds or instruments
- Deeds by incompetents
- Claims of undisclosed or pretermitted heirs
- Falsification of records
- Fraudulent stmts in the instruments as to marital status
- Undelivered but recorded deeds
- Adverse possession, prescription
- False personation of record owner
grantor-grantee index
Many problems are eliminated when tract indices are used since then all recorded instruments pertaining to a particular tract or parcel will generally be discovered despite “gaps”, out of turn recording, and “wild” instrument
shelter rule
2nd subsequent purchaser may take shelter under 1st subsequent purchaser who was BFP
wild deed
when the deed wasn’t properly recorded therefore a subsequent purchaser would only be discoverable through unreasonable burden
- S coveys to B, who does not record
- B conveys to C
- C records
- S conveys to D
- D records
- D would trace back the title through S to an endpoint and follow the chain forward.
- Bc B failed to record, the BC deed will not be discoverable, therefore it is a wild deed (unable to be captured by the reasonable searcher).
- C’s deed will only be discoverable through unreasonable burden.
- Since the BC was not properly recorded, it does not provide notice
