Recording Statutes

Question 1

Race Statute

Answer 1

Who wins = Person who records first

Question 2

Notice Statute

Answer 2

Who wins = Subsequent bona fide purchaser without notice

Question 3

Race-Notice Statute

Answer 3

Who wins = Subsequent bona fide purchaser, without notice,

who records first

Question 4

subsequent bona fide purchaser

Answer 4

Must pay value to prevail;

must pay all of the purchase price

Question 5

Types of Notice

Answer 5

1. Actual
2. Constructive
3. Inquiry

Question 6

Actual Notice

Answer 6

• Claimant actually sees the deed
• under which the other party is claiming,
• or otherwise knows of the conveyance

Question 7

Constructive Notice

Answer 7

The other party’s deed is recorded in the proper place in the record books

Question 8

Inquiry Notice

Answer 8

The appearance of the property is such that the claimant should have asked more questions about the title to the property

Question 9

Elements for prevailing under a race-notice statute

Answer 9

1. claimant took subsequent in time to another person claiming ownership of the real
   property in question;
2. claimant was a bona fide purchaser for value;
3. claimant took the property without actual, constructive, or inquiry notice; and
4. claimant recorded first

Question 10

Shelter Rule

Answer 10

• provides protection for a subsequent purchaser who does not satisfy the applicable recording statute
• Under the shelter rule, a person who is a successor in interest to a person protect- ed by the recording statute is also protected.

Question 11

Typical race statute language

Answer 11

“No (i) conveyance of land, or (ii) contract to convey, or (iii) option to convey, or (iv) lease of land for more than three years shall be valid to pass any property interest against lien creditors or purchasers for a valuable consideration from the donor, bargainor, or landlord but from the time of registration thereof in the county where the land lies….”

Question 12

Typical notice statute language

Answer 12

“A conveyance of an interest in land shall not be valid against any subsequent purchaser for value, without notice, unless the conveyance is recorded.”

Question 13

Typical race-notice statute

Answer 13

“Any conveyance of an interest in land shall not be valid against any subsequent purchaser for value, without notice, whose conveyance is rst recorded.”