Recording Statutes (Ch. 8)

Question 1

Fraud in the Inducement vs. Execution

Answer 1

(1) When there is fraud in the inducement, the subsequent purchaser who takes without notice from the wrongdoer is always protected under the recording statutes; (2) When there is fraud in the execution, the subsequent purchaser may or may not be protected (split in authority).

Question 2

Common Law Rule

Answer 2

Under common law, “first in time is first in right.” This rule prevails unless B can come under the protection of a recording statute. In all cases, B must be a purchaser.

Question 3

Notice Statute (general rule)

Answer 3

Under a notice statute, the subsequent transferee can prevail over a prior transferee if the subsequent transferee takes without notice and is a purchaser for valuable consideration.

Question 4

Notice Statute Rule (Where Statute Requires Recording)

Answer 4

A statute that requires “recording,” but not that the recording be “first duly recorded,” is a notice statute, meaning that the subsequent purchaser prevails unless he has notice.

Question 5

Prior deed recorded late

Answer 5

{J1} This kind of deed imparts no notice. A purchaser is not obligated to search the grantor index forward in time after O → B to see if there were subsequent conveyances.

{J2} This kind of deed imparts notice. A purchaser is obligated to search the grantor index forward in time from O → B to the present to see if there are any other conveyances.

Question 6

Deed Recorded before grantor secured title

Answer 6

{J1} This kind of deed imparts no notice. C is not obligated to check the grantor index to see if O conveyed the property prior to O → B.

{J2} This kind of deed imparts notice. C is obligated to check the grantor index back in time before O → B [possibly back to the day of birth of each grantor!] to see if there were prior conveyances.

Question 7

Deed Out From Common Grantor

Answer 7

{J1} This deed out imparts notice. X has a duty to check any adjacent parcels that O owned in the past for easements or other encumbrances.

{J2} This deed imparts no notice. X has no duty to check adjacent land.

Question 8

Delivery (but Grantor Retained Possession)

Answer 8

Delivery requires an intent to pass some interest immediately. While physical possession is probative, it is far from conclusive.