The Recording System

Question 1

What is a race statute?

Answer 1

A race statute is a recording act that alters the common law rule of “first in time, first in right” to protect the first party to record. Notice is irrelevant. Thus, a later transferee who records first takes title even if she knew of the prior conveyance.

Question 2

effect of a notice statute

Answer 2

subsequent bona fide purchaser (i.e. for value, without notice) prevails.

Question 3

effect of a race statute

Answer 3

grantee who records first prevails

Question 4

effect of a race-notice statute

Answer 4

subsequent bona fide purchaser (for value, without notice) who records first prevails

Question 5

In most states, a buyer who has paid only part of the purchase price under an installment land contract:

Answer 5

Is protected by recording acts only to the extent of payments made

Question 6

Inquiry notice

Answer 6

means that a subsequent grantee is held to have knowledge of any facts that a reasonable inquiry would have revealed, even if he made no inquiry.

Question 7

actual notice

Answer 7

Actual notice is what the purchaser actually knows and includes knowledge obtained from any source (e.g., newspaper, word-of-mouth). This would apply only if the subsequent purchaser actually knew about the unrecorded easement.

Question 8

record notice

Answer 8

Record notice is notice imparted by the recordation of a deed in the purchaser’s chain of title. Here, the easement is unrecorded and thus does not give the purchaser record notice.

Question 9

In order to prevail over a prior grantee under a race-notice statute, when must a subsequent bona fide purchaser record?

Answer 9

Before the prior grantee records.

Question 10

Under a __________ statute, a subsequent purchaser who pays valuable consideration and takes without notice of the prior conveyance prevails over a prior grantee who failed to record.

Answer 10

notice

Question 11

If a deed never was delivered, but the listed grantee discovers the deed and records it, the deed is:

Answer 11

void

Question 12

In order to prevail over a prior grantee under a notice statute, when must a subsequent bona fide purchaser record?

Answer 12

A bona fide purchaser will prevail over a prior grantee under a notice statute without ever recording.

Question 13

Who is a BFP?

Answer 13

A BFP is a purchaser who takes land without notice of a prior instrument and pays valuable consideration. Donees, heirs, and devisees are not BFPs because they do not give value for their interests; i.e., they are not purchasers.

Question 14

In order to prevail over a prior grantee under a race statute, when must a subsequent transferee record?

Answer 14

Before the prior grantee records.