the recording system Flashcards
main rule for notice jurisdiction
if BFP, last BFP wins, (no need to race to record)
main rule for race-notice jurisdiction
if BFP and first to record, wins
what are the 2 reasons recording acts exist
for 1) BFP and
2) mortgage creditors
what is a bona fide purchaser
one who
1) purchases FOR VALUE
AND
2) WITHOUT NOTICE someone else got it before
what is the rule for value for BFP
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
does BFP apply to donees, heirs or devises?
NO!!!! need for value
when is a BFP determined
AT TIME CLOSING
what are the 3 forms of notice that buyer is charged with (AIR)
1) actual
2) inqury
3) record
what is inquiry notice
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
record notice
deed is recorded properly w/i chain of title prior or at closing. B is held to have notice
notice statute language
“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”
who wins in pure notice state
LAST BFP TO TAKE WINS
what is the race-notice language
“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
what must a buyer to do win in race-notice state
1) be BFP AND
2) FIRST TO RECORD
Is IL a notice or race-notice state
RACE-NOTICE
to give record notice to subsequent takers what must happen
deed must be recorded properly
how is a deed recorded properly
by chain of title, which refers to that sequence of recorded documents: capable of giving record notice to takers.
what are the 3 discrete chain of title problems
1) shelter rule
2) wild deed
3) estoppel by deed
generally what is the shelter rule
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
what is a wild deed
if a deed, entered on the records has a grantor UNCONNECTED to the chain of title, the deed is wild.
what is wild deed rule
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
is a wild deed capable of giving record notice of its existence
NO. as if NEVER recorded at all
estoppel by deed rule
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
