The Recording Acts Flashcards
States with a “race” recording statute protect the party who records first, regardless of whether the party has notice of earlier interests. (2 states)
Advantage: eliminates the need for proof of who had notice and when the notice was obtained.
Example: O conveys to A. O conveys to B. O conveys to C. C records. C owns the land.
Race Jurisdictions
An unrecorded document is void as against any person who subsequently takes an interest in the property without notice of the unrecorded document. There is no requirement that the subsequent taker record his document.(Approx. ½ of the states)
Example: O conveys the land to A. A does not record the deed. Later, O sells the land to B. The land is vacant and B has no notice of the conveyance from O to A. Even though B does not record his deed, B owns the land.
Notice Jurisdictions
“No conveyance of real property shall be effective against creditors or subsequent purchasers for a valuable consideration and without notice, unless the same shall be recorded according to law.”
Notice Statute
The subsequent purchaser prevails if he takes without notice of the prior unrecorded document and records first. (Approx. ½ of the states)
Example: O conveys the land to A. A does not record the deed. Later, O sells the land to B. B records. The land is vacant and B has no notice of the conveyance from O to A. B owns the land.
the subsequent purchaser wins if he takes without notice of the prior unrecorded instrument and records first
Race- Notice Jurisdictions
In a race-notice jurisdiction, one claiming to be a subsequent BFP who first records may claim protection of the recording statutes only if all prior conveyances in the chain of title are duly (e.g., properly) recorded
A defect in an earlier deed will destroy the purchaser’s right to claim the protection of the recording statutes
Minority Rule (Zimmer Rule)
Under the _________ _____, a grantee who does not qualify as a subsequent BFP under the recording acts is “sheltered” by the earlier grantee’s protection
Once a party (C) obtains priority as a subsequent BFP under the recording acts, that priority “shelters” future grantees (D) who acquire the interest from the subsequent BFP
Shelter Rule
A ______ ______ is one that is recorded in such a way that it can’t be found in a title search.
wild deed
a purchaser is charged with notice of a prior interest that the purchaser could have obtained by investigating any “suspicious” circumstances surrounding the purchase
Constructive Notice
possession by the grantor of a recorded deed is not a “suspicious circumstance” and does not impart inquiry notice on subsequent purchasers
Constructive Notice
Exception
In notice and race-notice jurisdictions, whether a subsequent BFP obtains the protection of the recording statute depends on whether he takes his interest without notice of the prior interest. 3 types:
Actual - actual knowledge of a prior interest
Record - an interest that would be discovered by searching the real estate records
Inquiry - an interest that would be discovered if a reasonably prudent person would have investigated a suspicious circumstance
Record notice and inquiry notice are forms of _______ ______
constructive notice
The subsequent purchaser is deemed to have _________ even if he does not search the public records or make appropriate inquiries
notice
Anything that can be visibly observed by an inspection of the property constitutes inquiry notice to the purchaser
A document in the chain of title that refers to a document outside of the chain of title constitutes record notice to the purchaser
constitutes constructive notice
A deed induced by fraud is invalid and can be set aside by a court
But before the deed is set aside, the fraudulent owner has the ability to convey title
If the fraudulent owner conveys to a subsequent BFP, the subsequent BFP may prevail (over the defrauded original owner) under the recording statutes
Fraudulent Deeds
