Recording Acts Flashcards
Common Law
First in time, first in right —- no need to record to have title
Notice Act
A subsequent BFP for value without notice can obtain title that is superior to that of someone who received the property before him —– B wins if he is last BFP to take
Race-Notice
A subsequent BFP for value without notice who records first can obtain superior title —— B wins if he is a BFP and records before A does
** “without notice”, “first records” **
BFP: Notice
- Actual: literal knowledge
- Inquiry: what an examination/inspection of the property would have revealed
- Record: on notice of deeds properly recorded in chain of title
BFP: Purchaser for value
- purchaser = not someone who received property by gift, will, or devise —- donees, heirs, and devisees not protected *****
- pay valuable consideration
- take w/o notice
Shelter Rule
Allows traditional grantees who are not protected by the recording act to prevail by sheltering under the rights of those who conveyed the land to them and thereby steps into shoes of the BFP
** anyone who takes from a BFP will prevail against any interest the BFP would have prevailed against **
Shelter Rule
Allows traditional grantees who are not protected by the recording act to prevail by sheltering under the rights of those who conveyed the land to them
Forged deed and defective documents
Forged deeds and defective documents do not given notice, so BFPs who receive these are not protected by recording acts
Estoppel by deed
If a grantor transfers property to a grantee (when he does not have title to the property) by warranty deed and then later acquires title, the title will automatically go to the grantee unless the grantor later gave the land to a BFP
Title insurance
Purchaser’s protection against unknown defects of record in the chain of title
NOT REQUIRED unless contractually agreed upon
