Recording System Flashcards
What are the two bright line rules regarding the recording system?
(1) If B is a bona fide purchaser, and we are in a NOTICE jurisdiction B wins, regardless of whether or not she records before A does: (2) If B is a bona fide purchaser and we are in a RACE-NOTICE jurisdiction, B wins if she records properly before A does.
Wh is a bona fide purchaser?
One who buys Blackacre for value AND without notice that someone else got there first.
What are the three forms of notice that a buyer may potentially be charged with?
AIR: (1) Actual (2) Inquiry (VA doesn’t recognize inquiry notice) (3) Record
In regards to recording statutes, what is a notice statue?
The Notice Statute: “A conveyance of an interest in land shall not be valid against any subsequent purchaser for value, without notice thereof, unless the conveyance is recorded.”
If, at the time B takes, he is a BFP, he wins. It won’t matter that A may ultimately record first, before B does. It won’t matter, in the A vs. B contest, that B never records. The last BFP to enter wins.
In regards to recording statutes, what is a race-notice statue?
“Any conveyance of an interest in land shall not be valid against any subsequent purchaser for value, without notice
thereof, whose conveyance is first recorded.”
To prevail, B must 1) BFP and B must 2) wine the race to record.
In regards to recording statutes, what type of statue does VA have?
VA has a notice statute but in 2008 the VA Supreme Court suggested that it would require a later BFP to wine the race to record.
What is required to give record notice?
To give record notice to subsequent takers, the deed must be recorded properly, within: the chain of title, which refers to that sequence of recorded documents capable of giving recorded notice to later takers. In most states, the chain of title is established through a title search of the grantor-grantee index.
What is the shelter rule?
One who takes from a BFP will prevail against any entity that the transferor-BFP would have prevailed against. In other words, the transferee “takes shelter” in the status of her transferor, and thereby “steps into the shoes” of the BFP even though she otherwise fails to meet the requirements of BFP status.
What is the rule of the wild deed?
If a deed, entered on the records (A to B), has a grantor unconnected to the chain of title (O to A), the deed is a wild deed. It is incapable of giving record notice of its existence.
What is the rule of estoppel by deed?
One who conveys realty in which he has no interest (here, X), is estopped from denying the validity of that conveyance if he later acquires that previously transferred interest.
