Week 11

Question 1

Nemo dat means__

Answer 1

one cannot give what one does not have

Question 2

Nemo dat applies to __

Answer 2

individuals but also nations (Johnson)

Question 3

You are assumed to be transferring your whole interest to the transferee unless ___

Answer 3

specify very clearly

Question 4

Under nemo dat, even a good faith purchaser does not ___

Answer 4

have title to stolen property (Kuntsammlungen)

Question 5

Good faith purchaser exception to nemo dat

Answer 5

(1) voidable title (transaction made voluntarily through some sort of fraud)
(2) good faith purchaser
(3) for value (not necessarily market value)

Question 6

Good faith in good faith purchaser means __

Answer 6

lack of notice

Question 7

Actual notice in determining good faith purchaser

Answer 7

knows property fraudulently acquired

Question 8

Inquiry notice in determining good faith purchaser

Answer 8

RP in purchaser position would have engaged in further inquiry that would’ve led to actual knowledge

Question 9

Record notice in determining good faith purchaser

Answer 9

Purchaser duty to search title records and will be deemed to know relevant facts even if they do not in fact inspect the record

Question 10

If bad faith actor available to be brought to suit, __ keeps title and bad actor ___

Answer 10

GFPV, pay damages to OG owner

Question 11

However, in GFPV bad actor normally gone or judgment proof so court must -__

Answer 11

decide who bears loss, one approach who is cheapest cost avoider

Question 12

Voidable title under UCC means voluntary transfer (not theft) BUT ___

Answer 12

(1) transferor deceived as to identity of purchaser
(2) delivery in exchange for check that is later dishonored
(3) agreed transaction to be cash sale
(4) delivery procured through fraud

Question 13

Unlike the approach in ___, the UCC approach is more __-

Answer 13

Hauck, rule-based (negligence of buyer/seller irrelevant(

Question 14

Kotis says when defect in transaction from A to B, C can only acquire good title from B if ____

Answer 14

(1) B voidable title (acquired from A through voluntary transaction)
(2) B to C transfer for value
(3) C in good faith (notice of defect)

Question 15

Kotis held that while S had ____, K was not ___

Answer 15

voidable title and ability to transfer title, in good faith

Question 16

Kotis was in bad faith because ___

Answer 16

(1) lied about having bought the watch
(2) bought for much lower than FMV so on inquiry notice

Question 17

Voidable title in real property ways

Answer 17

fraud in the inducement, fraud in the factum

Question 18

Fraud in the inducement means that victim ___

Answer 18

signs K knowing what it is BUT agrees to sign because of misrepresentations about benefits/risks of transaction

Question 19

Fraud in the factum means that the victim misled about ___

Answer 19

legal instrument they are signing

Question 20

Hauck says that when an OG transferor is fraudulently induced to sign a deed ___

Answer 20

believing something other than what it really is, title void and cannot be transferred even to GFPV

Question 21

Hauck held that title was ____ but if P ___

Answer 21

fraud by factum, negligent an estoppel may arise to protect GFPV

Question 22

Land is not governed by __

Answer 22

UCC

Question 23

A similar case to Hauck in ND found that deed was ___

Answer 23

only voidable and GFPV could acquire good title

Question 24

Hauck may be allowing GFPV in case of negligence because __

Answer 24

bad actor in court and so remedy for both parties

Question 25

In recording system, parties ___ and public official ___

Answer 25

voluntarily file important docs for establishing right to property in public repository, check to ensure format not content nor validity

Question 26

Recordation has ____ cost

Answer 26

higher ex post

Question 27

Recordation puts burden on parties ___

Answer 27

to purchase title insurance to prevent upstream risks

Question 28

Registration system means that parties ___ and public official ___

Answer 28

bring docs to be publicly recorded, sorts out state of title

Question 29

Registration requires ___ cost

Answer 29

higher ex ante

Question 30

Problem with registration system

Answer 30

potential for corruption/bias by public officials

Question 31

There is ____ to inquire where cash came from

Answer 31

no duty

Question 32

Recording creates ____ to subsequent purchasers

Answer 32

constructive notice

Question 33

Race recording

Answer 33

first to record has better claim (even if she has notice)

Question 34

Under race statute, if A sells to B then to C but C records before B __

Answer 34

C gets title, notice or not

Question 35

Notice statute

Answer 35

subsequent GFPV wins unless she has notice (can be actual, constructive or inquiry, rec

Question 36

what is notice under notice statute

Answer 36

(can be actual, constructive or inquiry, record is notice

Question 37

Under notice statute, if A sells to B then to C but C no notice of A-B then __

Answer 37

title to C

Question 38

Under race-notice statute, subsequent GFPV only wins if ___

Answer 38

she has no notice and records before B

Question 39

Shelter rule says that you can have notice grantee competing with another grantee if ____

Answer 39

recorded properly + acted in good faith (claim is sheltered)

Question 40

Under Shelter rule, if O conveys to A who doesn’t record and then to B who has no notice O-A. B records. B then gifts/sells to C who has notice.

Answer 40

C not GFPV but still wins over A because B all attributes of ownership once wins over A

Question 41

Under shelter rule, B cannot ___

Answer 41

transfer to O

Question 42

If deed outside of title search it does not ___

Answer 42

afford constructive notice

Question 43

Wild deed is when grantee ___

Answer 43

records before her grantor

Question 44

You cannot benefit from nemo dat if trace ownership to __-

Answer 44

wild deed

Question 45

If O transfer to A who doesn’t record then to B who doesn’t record and B –> C who does record then C deed is ___

Answer 45

wild because B wouldn’t be found in chain of title

Question 46

Mother Hubbard clause is when deeds have ___ and they are only valid to __

Answer 46

general description of collection of land without enumerating, parties but not constructive notice to subsequent purchasers

Question 47

Recording acts only protect __

Answer 47

good faith purchasers for value

Question 48

If no one recorded then ___ apply

Answer 48

nemo dat and GFPV

Question 49

Race notice statutes seem to displace GFPV because __

Answer 49

can’t prevail as GFPV unless also recorded first

Question 50

Hood says that under race-notice statute, transferee who __

Answer 50

records deed does not have title unless can demonstrate she was GPFV

Question 51

Hood holds that since ___ could not show they were GFPV and P claim prevailed

Answer 51

conveyance to D lacked consideration/was a gift

Question 52

Hood dissent says the P should not have been given deed because __

Answer 52

broke all promises to transferor

Question 53

Under nemo dat, prior legal/equitable interests ___

Answer 53

beats later legal/equitable interest

Question 54

Where prior equitable interests compete with later legal interests, legal interest prevails only if ___

Answer 54

acquired for value + without notice

Question 55

___ operates outside recording/title system

Answer 55

AP

Question 56

Mugass says that proper transfer of clean title does not guarantee ownership if ___

Answer 56

another party established AP

Question 57

We don’t require APs to record title because __

Answer 57

innocent good faith AP would not be aware they had to do this

Question 58

Potential remedy to AP recording problem

Answer 58

marketable title set period of 30-40 years beyond which claims extinguished if not on record

Question 59

Problem with Potential remedy to AP recording problem

Answer 59

possession still provides strongest notice of the claim