Property - The Recording System

Question 1

Two Brightline Rules for a Record System

Answer 1

1. If Buyer is a BFP and notice jurisdiction, Buyer wins regardless of whether or not she records before prior purchaser.
2. If Buyer is a BFP and we are in a race-notice jurisdiction, B wins if she record properly before A does.

Question 2

Who is a bona fide purchaser?

Answer 2

(i) Buys blackacre for value [“substantial pecuniary consideration] [Thus, donee’s don’t apply]
(ii) Buyers without notice that someone else go there first. [Actual/Inquiry/Record]

For inquiry notice, B must inspect to see if someone is in possession. Must reasonably follow up in recorded instrument references unrecorded transaction.

MA - Doesn’t recognizes inquiry notice.

Question 3

What is “A conveyance of an interest in land shall not be valid against any subsequent purchaser for value, without notice thereof, unless the conveyance is record” ?

Answer 3

Notice Statute. Last BFP to enter wins.

Massachusetts is a notice statute state.

Question 4

Any conveyance fo an interest in land shall not be valid against any subsequent purchaser for value, without notice thereof, whose conveyance is first recorded?

Answer 4

Race Notice Statue.

To prevail, B must (1) be a BFP and (2) B must win the race to record.

Question 5

Shelter Rule

Answer 5

One who takes from a BFP will prevail against any entity that the transferror-BFP would have prevailed against.

Transferee “takes shelf” in the status of her transferror and thereby steps into the should of the BFP even if they don’t qualify as a BFP. (i.e. a donee)

Question 6

Rule of the Wild Deed

Answer 6

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

Question 7

Rule of Estoppel by Deed

Answer 7

One who conveys realty in which he has not interest is estopped from denying the validity of that conveyance if he later acquire that previously transferred interest.