Ass. 48-49: The Recording Acts

Question 1

what are the three recording acts jurisdictions

Answer 1

• Notice jurisdiction
• Race-notice jurisdiction
• Race jurisdictions

Question 2

race recording act

Answer 2

• 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

Question 3

if O sells to A then to B, whoever records first will win

Answer 3

race recording act

Question 4

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

Answer 4

Race recording act

Question 5

notice recording act

Answer 5

• 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

Question 6

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

Answer 6

notice recording act
(BFP w/o notice will prevail)

Question 7

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

Answer 7

notice recording act

Question 8

race-notice act

Answer 8

• 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

Question 9

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

Answer 9

race notice

Question 10

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

Answer 10

race-notice

Question 11

what are the most common recording acts?

Answer 11

notice and race-notice

Question 12

what will suffice for constructive notice?

Answer 12

Any recorded instrument of conveyance, usually a deed or a mortgage will give constructive notice

Question 13

constructive notice for recording acts

Answer 13

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

Question 14

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.

Answer 14

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

Question 15

inquiry notice

Answer 15

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

Question 16

what does purchaser refer to?

Answer 16

Purchaser refers to purchaser of a legal interest in property

Question 17

subsequent purchaser

Answer 17

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

Question 18

what does it take for the deed to be duly recorded?

Answer 18

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

Question 19

what would happen if the instrument of conveyance was void?

Answer 19

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

Question 20

relation of the recording acts to adverse possession

Answer 20

The recording statutes have no application to a title procured by adverse possession or prescription

Question 21

chain of title

Answer 21

the regular series of recorded instruments – each grantee becoming a subsequent grantor

Question 22

proper recording means

Answer 22

1. an instrument in the direct chain of title, or
2. a recital in an instrument in such direct chain of title

Question 23

Recording statutes give protection to 2 persons only

Answer 23

1. BFP or encumbrancer
2. One who claims through such a BFP or encumbrancer

Question 24

In order to be a BFP purchaser protected under the recording act, one must

Answer 24

1. Be subsequent
2. Pay value
3. Be w/o notice
4. Be of good faith

Question 25

recording acts do not protect…

Answer 25

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

Question 26

Recording acts generally afford purchasers either no or inadequate protection against the following:

Answer 26

1. Forged and other void deeds or instruments
2. Deeds by incompetents
3. Claims of undisclosed or pretermitted heirs
4. Falsification of records
5. Fraudulent stmts in the instruments as to marital status
6. Undelivered but recorded deeds
7. Adverse possession, prescription
8. False personation of record owner

Question 27

grantor-grantee index

Answer 27

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

Question 28

shelter rule

Answer 28

2nd subsequent purchaser may take shelter under 1st subsequent purchaser who was BFP

Question 29

wild deed

Answer 29

when the deed wasn’t properly recorded therefore a subsequent purchaser would only be discoverable through unreasonable burden

Question 30

1. S coveys to B, who does not record
2. B conveys to C
3. C records
4. S conveys to D
5. D records

Answer 30

• 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