the recording system

Question 1

main rule for notice jurisdiction

Answer 1

if BFP, last BFP wins, (no need to race to record)

Question 2

main rule for race-notice jurisdiction

Answer 2

if BFP and first to record, wins

Question 3

what are the 2 reasons recording acts exist

Answer 3

for 1) BFP and

2) mortgage creditors

Question 4

what is a bona fide purchaser

Answer 4

one who
1) purchases FOR VALUE
AND
2) WITHOUT NOTICE someone else got it before

Question 5

what is the rule for value for BFP

Answer 5

1) remits SUBSTANTIAL PECUNIARY CONSIDERATION
- can be bargain basement sale if given substantial money

2) doomed donee: recording statutes DO NOT protect doness heirs, or devises unless shelter rule

Question 6

does BFP apply to donees, heirs or devises?

Answer 6

NO!!!! need for value

Question 7

when is a BFP determined

Answer 7

AT TIME CLOSING

Question 8

what are the 3 forms of notice that buyer is charged with (AIR)

Answer 8

1) actual
2) inqury
3) record

Question 9

what is inquiry notice

Answer 9

buyer of RE has duty to INSPECT b4 transfer title, to see if anyone is in possession. B has inquiry notice w/e or not actually bothered to inspect

Question 10

record notice

Answer 10

deed is recorded properly w/i chain of title prior or at closing. B is held to have notice

Question 11

notice statute language

Answer 11

“a conveyance of an interest in land shall not be valid against any subsequent purchaser for value , w/o notice thereof, unless the conveyance is record”

Question 12

who wins in pure notice state

Answer 12

LAST BFP TO TAKE WINS

Question 13

what is the race-notice language

Answer 13

“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

Question 14

what must a buyer to do win in race-notice state

Answer 14

1) be BFP AND

2) FIRST TO RECORD

Question 15

Is IL a notice or race-notice state

Answer 15

RACE-NOTICE

Question 16

to give record notice to subsequent takers what must happen

Answer 16

deed must be recorded properly

Question 17

how is a deed recorded properly

Answer 17

by chain of title, which refers to that sequence of recorded documents: capable of giving record notice to takers.

Question 18

what are the 3 discrete chain of title problems

Answer 18

1) shelter rule
2) wild deed
3) estoppel by deed

Question 19

generally what is the shelter rule

Answer 19

if a person is a BFP and records first and later GIVES AWAY (not for value) to gift to another person. That other person steps into the shoes of the BFP and wins against others

Question 20

what is a wild deed

Answer 20

if a deed, entered on the records has a grantor UNCONNECTED to the chain of title, the deed is wild.

Question 21

what is wild deed rule

Answer 21

if a deed, entered on the records has a grantor UNCONNECTED to the chain of title, the deed is wild.
- the deed is INCAPABLE OF GIVING RECORD NOTICE OF ITS EXISTENCE

Question 22

is a wild deed capable of giving record notice of its existence

Answer 22

NO. as if NEVER recorded at all

Question 23

estoppel by deed rule

Answer 23

one who conveys realty in which he has no interest, is estopped from denying the validity of that conveyance IF he later acquires later transfer interest