Recording Deeds Flashcards
Notice Statute
under a notice statute, a subsequent BFP prevails over a prior grantee to the property who failed to record their deed *because the BFP had no notice of the deed at the time of the conveyance.
Race-Notice Statute
under a race-notice statute, a subsequent BFP is protected only if she takes without notice and records before the prior grantee.
Race Statute
under a pure race statute, whoever records first wins.
To be a bona fide purchaser, a person must be what?
a purchaser without notice who paid valuable consideration.
Notice
for the purposes of recording, notice can come from any source, including chain of title searches or the newspaper.
Wild Deed
a recorded deed that is not connected to the chain of title. There is a gap in the chain of title.
A bona fide purchaser is a for value without actual, record or inquiry notice of a prior claim. What is actual notice?
knowledge of the prior claim to the property.
What is record notice?
the deed is recorded.
What is inquiry notice?
an inspection of the land would have revealed that someone had title to it.
Under a notice statute, a bona fide purchaser takes how?
free of prior interests.
Bona Fide Purchaser
a purchaser for value who takes without actual, record or inquiry notice of the prior grant.
What are the three types of notice?
actual notice; record notice; inquiry notice
Shelter Rule
where a BFP transfers or conveys an interest in land to someone, that person takes the land free of the interests that the BFP took the land free of IF the person had actual notice of the prior interest.
Does a BFP have notice of a wild deed?
no, the BFP does not take notice of a wild deed because a wild deed is outside the chain of title, and therefore cannot be discovered via looking at the records.
A holder of a trust sells the trust property to a buyer. The seller never bothered to record the trust deed. The buyer knows nothing of the trust deed. Does the BFP take free of the trust?
yes. Even if the land is a trust, a BFP will take the property free of all encumbrances if the trust deed is not recorded and the BFP has no notice. It doesn’t matter if it is a trust. It can still be taken by a BFP.
