CH 10 Public Records Flashcards
What are the 3 main reasons we require recording of real estate documents?
- To know who owns what
- To know who has priority
- To establish a chain of title
Why is it important to know who has priority?
there can be multiple competing interests in a property (like multiple mortgagors for example)
What can establishing a chain of title determine?
It determines the previous owners through past real estate documents.
What will show up when looking at a chain of title, and what is the minimum amount of years in Arkansas?
Mortgagers, easements, and restrictive covenants will show up.
30 years minimum in Arkansas.
What are the 3 types of recording acts?
(1) Race statute
(2) Notice statute
(3) Race-Notice statute
Recording Acts: what is a race statute?
First to record will win, regardless of whether he has notice of the other claimant and regardless of which interest is prior in time.
Recording Acts: what is a notice statute?
The last bona fide purchaser wins; a subsequent purchaser who takes without notice of the prior unrecorded interest wins.
Recording Acts: what is a race-notice statute?
The first bona fide purchaser to record wins; the subsequent purchaser must both record before the holder of the prior in time interest records and take without notice of the prior interest.
What are the 3 types of notice?
(1) actual notice
(2) constructive notice
(3) inquiry notice
Actual notice?
Where the purchaser has actual knowledge of the prior interest.
Constructive notice?
Where the purchaser is deemed to have notice of all recorded deeds (and thus has notice)
Inquiry notice?
If the purchaser has knowledge of facts suggesting that someone might have an unrecorded interest, the purchaser has a duty to inquire and is charged with knowing whatever the inquiry would have revealed.
Does Arkansas have inquiry notice?
yep
What mental standard is inquiry notice based on?
A reasonable person standard.
Rule on patent defects in recorded instruments?
An instrument with a patent defect, even if recorded, does NOT provide constructive notice to a BFP because the instrument is held invalid.
Are there any safeguards for minor errors or defects in instruments?
Yes, some states have statutory safety nets for minor errors/defects on instruments.
Including Arkansas.
