Recording Flashcards
What is the general rule for whether a subsequent purchaser has title over an earlier grantee?
first in time, first in right
*But see recording statutes
Who does the recording act apply to?
in Texas, BFP (including mortgagees) as well as good faith creditors
What are the types of recording acts?
Notice: subsequent BFP who has no actual or constructive notice prevails over prior grantee who failed to record. (*this is TX)
Race-notice: Subsequent BFP for value who take without notice and are first to record prevail over prior grantee.
Race: Protects BFP who is the first to record, regardless of whether she had notice.
What is a bona fide purchaser?
BFP for value, without notice.
For value: only need nominal amount, but does not apply to heirs, donees, etc.
Without notice: actual, constructive (record in chain of title), or inquiry (reasonable inquiry would have revealed title)
What is the shelter rule exception?
If transferee takes from BFP, then the transferee will prevail against any interest the transferor BFP would have (even if transferee had notice or did not pay value)
Under Texas law, can the grantee of a quitclaim deed be a BFP?
No, quitclaim deeds put grantee on notice of any defects that exist in chain of title so cannot be a BFP.
What are the two kinds of title searches?
Tract index jx: look to property/block
Grantor and grantee jx: look to grantor/grantee index to see how the chain of title has been passed.
What is a wild deed?
Recorded deed that is not connected to chain of title.
e.g. O conveys Blackacre to A. A does not record. A conveys it to B and B records. O conveys Blackacre to C. C does not have notice of B’s claim.
Does not impart constructive notice.
Are deeds recorded too late valid to put BFP on constructive notice?
No. Deed recorded after grantor is shown by record to have parted with title through a subsequent instrument is not constructive notice in most states.
