Recording Acts & Title Assurance Flashcards
What are the two kinds of fraud in deed execution?
Fraud in execution = Void
Person does not know they are signing a deed
Fraud in the inducement = Voidable interest in grantee
O knows it’s a deed but was tricked into signing
O can bring action to file lis pendens and void conveyance
But if BFP purchases from A, they win
What are the three types of recording statutes?
Race: As between successive purchasers, the person who wins the race to record at the recorder’s office prevails
Notice: It is inequitable to allow a subsequent purchaser to win if they have actual/inquiry notice of a prior unrecorded interest
If B takes from O, B has to show no inquiry notice (e.g., A living on the property), no constructive notice, and no actual notice to prevail
If they prove these things, they do NOT have to record to be granted the property (unless there is a subsequent purchaser)
B has to be of value, subsequent, and have had no notice
Race-Notice: B must show that they are of value, subsequent, had no notice, and recorded first
What is the Shelter Rule?
A person who takes from a bona fide purchaser protected by the recording act has the same rights as the grantor
What are the three kinds of notice?
Actual: Arises where one is personally aware of a conflicting interest in real property
Constructive: Notice one has based on properly recorded instruments
Inquiry: There are facts that would cause a reasonable person to make inquiry into the possible existence of an interest in real property
How do you search chain of title?
1) Search name of person X trying to convey land through grantee index until you find a deed to them from M in 2012
2) Repeat from 2012 with name M until another conveyance identified; repeat until at root of title
3) Move to grantor index and person who had title in root of title year (L)
4) Search forward in time under name of each grantor from execution of the deed to recording of the deed to the same person
You search forward from execution as opposed to recording in case the owner executed any mortgages, etc.
How do you properly record?
Requires certificate of acknowledgement as proof of authenticity
Certificate of acknowledgement requires in-person notarization
What are the two rules if there is a latent defect in the certificate?
Maj. view: Latent defect defeats constructive notice (but not actual/inquiry)
Min. view (AJ prefers): Latent defect does not defeat constructive notice
Do wild deeds provide constructive notice?
No, because they will be missing in a grantor-grantee index
What happens if O transfers to A then O transfers to B and B records, then A records, then B transfers to C?
Maj. view: C would stop looking when they find O -> B transfer, so would not have constructive notice of O -> A
Min. view: C would have constructive notice, should keep looking beyond O -> B
What are the marketable record title acts?
When one person has a record title to land for a designated period of time (usually 30-40 years), prior inconsistent claims or interests are extinguished
