Recording Acts Flashcards
Common-Law Recording Rule
This is the baseline for recording problems
Follows the “first in time, first in right” principle (ie, the first grantee to receive a deed wins)
Persons NOT Protected By Recording Acts
Grantees who acquire title by gift, intestacy, or devise are NOT protected by recording acts
Three Types of Notice
1) Actual Notice: when the subsequent grantee has real, personal knowledge of a prior interest
2) Constructive Notice (ie, record notice): when a prior interest is recorded
3) Inquiry Notice: when a reasonable investigation would have disclosed the existence of prior claims
- “dude on the land”: when someone else is living on the land or using it the land
- mentioned interest: when there is an interest mentioned in the deed to some other transaction; had the subsequent grantee inquired, he would have discovered the interest (eg, you see an easement mentioned)
Race Statutes
Rule: First to record wins, even if the subsequent purchaser had notice of a prior, unrecorded conveyance
Key Language = “first to record” or “first recorded”
Notice Statutes
Rule: A subsequent purchaser wins if she acquires without notice of a prior, unrecorded conveyance
Key Language = “in good faith” or “without notice”
Race-Notice Statutes
Rule: A subsequent purchaser wins if two requirements are met: (1) acquired without notice of a prior unrecorded conveyance, and (2) records first
Key Language = “in good faith” or “without notice” plus “first duly recorded” or “first recorded”
Shelter Rule
A person who takes from a bona fide purchaser protected by the recording act has the same rights as her grantor
Estoppel by Deed
Arises when a grantor conveys land the grantor does not own
If a grantor subsequently acquires title to the land, the grantor is estopped from trying to repossess on grounds that he didn’t have title when he made the original conveyance.
