Recording Statutes & Related Issues Flashcards
1
Q
What is a Bona Fide Purchaser?
A
To qualify as a bona fide purchaser, a person must pay valuable consideration for the interest, and must not have actual, inquiry or record (constructive) notice of the prior interest.
2
Q
What is Inquiry Notice?
A
A party is charged to have inquiry notice of any discernible interest that a visual inspection would have revealed on the premises.
3
Q
What is the effect of Shelter Doctrine?
A
Under the shelter doctrine, a person who takes from a bona fide purchaser will prevail against any interest that the bona fide purchaser would have prevailed against.
This is true even where the subsequent purchaser had actual notice of the previous encumbrance.
