Recording System Flashcards
Where a subsequent taker cannot invoke the protection of the recording acts, the common law rule applies
First in time, first in right
The first person to acquire an interest prevails over all later claimants under the common law rule, unless a __________ ___________ is protected by the state’s recording act
subsequent purchaser
Be subsequent,
Pay value, and
Be without notice of prior inconsistent claim.
Bona fide purchaser doctrine:
The value must have actually been paid before notice
Must be without actual notice, constructive/ record notice, and inquiry notice
Be without notice
Donees, devisees, and heirs are not ___________ for value
purchasers
To protect against fraud
To promote certainty in the transfer of interests in real property
To promote the use of real property as security for loans
To encourage buyers and lenders to make diligent inquiry into the status of sellers’ interests in real property
To put the burden on buyers and lenders – not the government or the courts – to determine ownership of real property
Purpose of Recording
The recording statutes provide special protection to a __________ _____ ______ ___________ who acquires title without notice of a prior conveyance
subsequent bona fide purchaser
Recording has no effect on the validity of a ______ or other instrument.
deed
A deed or other instrument (such as a mortgage) is effective between the parties without __________.
recording
Each recorded document is indexed by the names of the grantor and the grantee
Location of the recorded document is given (book/page number, reel/image number, etc.)
Grantor/Grantee Index
Each recorded document is indexed by a “tract number” or a “parcel identification number”
Location of the recorded document is given
Tract Index
Land registration system
Torrens System
Search the indices to locate the recording locations of the relevant documents that may affect title to the subject property
Retrieve the relevant documents from their recording locations
Evaluate the legal significance of the relevant documents to determine the validity of the seller’s title and to determine if any 3rd parties have rights to or interests in the property
Title Search Steps
A clause included in a deed, assignment or other recorded document that gives the grantee title to any other property of the grantor that is located in the same county, regardless of whether the property is specifically listed in the recorded document
Mother Hubbard Clauses
Transfers made pursuant to ________ ________ clauses are only effective as to a subsequent BFP if he/she had actual knowledge of the transfer
“Mother Hubbard”
