The Recording System

Question 1

Hypo–O conveys Blackacre to A–later, O coveys Blackacre, the same parcel, to B–O, the double dealer, has skipped town–in the battle of A vs. B, who wins?
2 Brightline Rules

Answer 1

1-if B is a Bona Fide Purchaser (BFP), and we are in a notice jurisdiction, B wins, regardless of whether or not she records before A records
2-if B is a BFP and we are in a race-notice jurisdiction, B wins if she records properly before A does

Question 2

Bona Fide Purchase

Answer 2

One who i) purchases Blackacre for value AND ii) w/o notice that someone got there first

Question 3

3 Forms of Notice a Buyer May Be Charged With

Answer 3

AIR
1-actual
2-inquiry
3-record

Question 4

Actual Notice

Answer 4

prior to B’s closing, B learns of A

Question 5

Inquiry Notice

Answer 5

a. whether he looks or not, B is on inquiry notice of whatever an exam of Blackacre would show
- the buyer of Blackacre has a duty to inspect before transfer of title, to see, for example, whether anyone else is in possession–if so, B has inquiry notice, regardless of whether the buyer actually bothered to inspect
b. if a recorded instrument makes reference to an unrecorded transaction, grantee is on inquiry notice of whatever a reasonable follow-up would show

Question 6

Record Notice

Answer 6

B is on record notice of A’s deed if at the time B takes, A’s deed was properly recorded

Question 7

The Notice Statute

Answer 7

“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–doesn’t matter that A may ultimately record first, before B does–won’t matter, in the A vs. B contest, that B never records

Question 8

The Race Notice Statute

Answer 8

“Any conveyance of an interest in land shall not be valid against any subsequent purchaser for value, w/o notice thereof, whose conveyance is first recorded”

-to prevail, B must 1) be a BFP and B must 2) win the race to record

Question 9

The Shelter Rule

Answer 9

-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

Question 10

The Problem of the Wild Deed

Answer 10

-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’s incapable of giving record notice of its existence

Question 11

Estoppel by Deed

Answer 11

-one who conveys realty in which he has no interest is estopped from denying the validity of that conveyance if he later acquires that previously transferred interest