Recording System Flashcards
O sells land to A first and then to B.
In a notice jurisdiction, if B is a bona fide purchaser, what do you know?
B wins regardless of whether or not she records before A.
O sells land to A first and then to B.
In a race notice jurisdiction, who wins?
The one who records first.
What makes a purchaser a BFP?
Person who buys Blackacre for VALUE, and
WITHOUT NOTICE that someone else got there first.
Can B be a BFP if she bought Blackacre (FMV: $200,000) for $100,000?
B is still a purchaser for value - substantial pecuniary consideration is required - but can be a “bargain basement sale”
Can B be a BFP if Blackacre was given to her as a gift?
No - unless the shelter rule applies.
Recording statutes don’t protect donees, heirs, or devisees without the shelter rule.
What are the three types of notice that, if B has, will render be NOT a BFP?
Actual, Inquiry, and Record
What is actual notice?
B actually knows that O sold to A before closing on Blackacre.
What is inquiry notice?
If B would learn that O had sold to A before B by inspecting Blackacre (like A was already living there) - B would be on inquiry notice.
What is record notice?
If A’s deed was properly recorded in the chain of title before B closed, B is deemed on record notice of A’s title.
“A conveyance of interest in land shall not be valid against any subsequent purchaser for value, without notice thereof, unless the conveyance is recorded.” What kind of jurisdiction is this?
Notice Jurisdiction.
The last BFP wins.
“A conveyance of interest in land shall not be valid against any subsequent purchaser for value without notice thereof, unless the conveyance is first recorded.” What kind of jurisdiction is this?
Race-Notice Jurisdiction (like NY).
The first BFP to record wins.
What is a guarantor-guarantee index?
The index that holds the chain of title - where B is supposed to look or will be constructively deemed on notice of anyone with superior title.
What is the shelter rule?
One who takes (buys or is gifted) from a BFP will take with BFP status even if they themselves would not qualify as a BFP.
What is a wild deed?
If a link in the chain of title is missing, the wild deed will be incapable of giving record notice. A wild deed is a nullity.
O sells to A but no deed is recorded. A sells to B, who records. Then O sells to C, and C records. Who takes?
C takes in a race notice or regular notice jurisdiction.
B has a wild deed. There is a link missing in the chain from O to A. B’s deed is a nullity.
