Title Records & Transfers

Question 1

Land Transactions

Answer 1

1. Enter Contract
2. Secure Financing
3. Closing
4. Record the deed

Question 2

Contracts

Answer 2

• Statute of Frauds applies
• No transfer unless contingencies are met:
  1. Buyer secures financing
  2. Buyer inspects property
  3. Seller conveys marketable title

Question 3

Equitable Conversion (Equitable Title)

Answer 3

Land contracts and mortgages hold no property interests (even though mortgager holds title), holder only has a lien against the property

Question 4

Nemo dat quod non habet

Answer 4

“One cannot sell which he does not have”
- A person can only sell what they actually own
Ex: A transfers to B, and then by mistake or deciet A transfers to C
Under nemo dat, B gets property since it was his once A transferred

Question 5

The Good Faith Purchaser (GFP)

Answer 5

Serves as an exception to nemo dat
Ex: A sells goods to B, but B paid for goods with bounced check. B then sells goods to C. So long as C purchased goods in good faith, without knowledge of prior transaction, the law will generally give C property

Question 6

Void Title v. Voidable Title

Answer 6

Void Title
a. Persons who take property from another without consent
b. Coercion, no title at all

Voidable Title
a. Persons who fraudulently induce owner to voluntarily transfer goods
b.If title was voidable and sold to another, it is still voidable

Question 7

Recordation

Answer 7

• About creating certainty in land
• Recording not required to transfer title between parties

Question 8

Types of Recording Acts

Answer 8

1. Race
2. Notice
3. Race-Notice
4. The Shelter Rule

Question 9

Race

Answer 9

First to record transfer wins

Question 10

Notice

Answer 10

Property will be awarded to a 2nd purchaser who records IF 2nd purchaser acted in good faith and did not know of any pre-existing claims. If OG owner records prior, good faith rights are eliminated.

Ex: O to A (does not record) and then O to B w/ consideration and no notice of prior conveyance. B wins

Question 11

Race-Notice

Answer 11

Awards property only if GFP had no notice and recorded before prior instrument recorded

Ex: O to A and then O to B w/ consideraition. B wins if B records first and has no notice of O’s prior transfer to A before A recorded. If neither notice nor prior recordation is met, A wins under nemo dat

Question 12

Shelter Rule

Answer 12

Exception for certain transferees who otherwise would be barred from obtaining title b/c they are NOT GFP for value.

Ex: O to A who does not record. Then O to B who gives value and has no notice of prior conveyance to A. B then gifts/sells the land to C, who is unaware of A transaction. Under shelter rule, C wins over A. Unless B seeks to transfer property back to O, then shelter does not apply.

Question 13

Title Search

Answer 13

• Before purchasing land you can get a title search, which will trace the title back a number of years. Insurance can be purchased against this.
• However, the search will not find unrecorded transfer of title, like adverse possession, so purchaser should hire a surveyor

Question 14

Statute of Frauds

Answer 14

Any transfer of land, or lease for a term exceeding a year must be in writing. Easements as well