The Recording System

Question 1

Race jurisdiction

Answer 1

First to record wins

A conveyance of an estate in land shall not be valid against a subsequent purchaser for value unless the conveyance is first recorded.
-Look for only “first”

Question 2

Notice jurisdiction

Answer 2

Last BFP to take wins
-If not BFP, A takes

A conveyance of an interest in land, other than a lease for less than one year, shall not be valid against any subsequent purchaser for value, without notice thereof, unless the conveyance is recorded.

Question 3

Race-notice jurisdiction

Answer 3

BFP that records first wins
-If A records first or B is not a BFP, A takes

A conveyance of an interest in land, other than a lease for less than one year, shall not be valid against any subsequent purchaser for value, without notice thereof, whose conveyance is first recorded.
-Look for “without notice” + “first”

Question 4

Bona fide purchaser (BFP)

Answer 4

To be a bona fide purchaser, a grantee must:
-Be a purchaser (or a mortgage lender) that did not receive the property by gift, will, or inheritance (does not protect donees, heirs, and devisees)
-Pay valuable consideration
-Take without notice (actual, constructive, or inquiry) of the prior conveyance

Question 5

Actual notice

Answer 5

Literal knowledge of prior conveyance

Question 6

Inquiry notice

Answer 6

Buyer has duty to inspect the premises before transfer of title to see whether anyone else is in possession
-Also means that if a recorded instrument makes reference to an unrecorded transaction, grantee is on inquiry notice of whatever a reasonable follow-up would have revealed

Question 7

Record notice

Answer 7

Buyer is charged with notice if a record search would reveal that a prior conveyance was properly recorded within the chain of title

Question 8

Chain of title

Answer 8

The sequence of recorded documents capable of giving record notice to subsequent takers

Question 9

The shelter rule

Answer 9

Anyone who takes from a BFP will prevail against any interest the BFP would have prevailed against (steps into BFP’s shoes)
-This rule protects the BFP by allowing it to transfer property

Question 10

Wild deed

Answer 10

A recorded deed that is not connected to the chain of title
-Does not give record notice

i.e., O to A, who does not record. Then, A to B, who records.
-The A-B deed is a wild deed