Week 11 Flashcards
Nemo dat means__
one cannot give what one does not have
Nemo dat applies to __
individuals but also nations (Johnson)
You are assumed to be transferring your whole interest to the transferee unless ___
specify very clearly
Under nemo dat, even a good faith purchaser does not ___
have title to stolen property (Kuntsammlungen)
Good faith purchaser exception to nemo dat
(1) voidable title (transaction made voluntarily through some sort of fraud)
(2) good faith purchaser
(3) for value (not necessarily market value)
Good faith in good faith purchaser means __
lack of notice
Actual notice in determining good faith purchaser
knows property fraudulently acquired
Inquiry notice in determining good faith purchaser
RP in purchaser position would have engaged in further inquiry that would’ve led to actual knowledge
Record notice in determining good faith purchaser
Purchaser duty to search title records and will be deemed to know relevant facts even if they do not in fact inspect the record
If bad faith actor available to be brought to suit, __ keeps title and bad actor ___
GFPV, pay damages to OG owner
However, in GFPV bad actor normally gone or judgment proof so court must -__
decide who bears loss, one approach who is cheapest cost avoider
Voidable title under UCC means voluntary transfer (not theft) BUT ___
(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
Unlike the approach in ___, the UCC approach is more __-
Hauck, rule-based (negligence of buyer/seller irrelevant(
Kotis says when defect in transaction from A to B, C can only acquire good title from B if ____
(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)
Kotis held that while S had ____, K was not ___
voidable title and ability to transfer title, in good faith
Kotis was in bad faith because ___
(1) lied about having bought the watch
(2) bought for much lower than FMV so on inquiry notice
Voidable title in real property ways
fraud in the inducement, fraud in the factum
Fraud in the inducement means that victim ___
signs K knowing what it is BUT agrees to sign because of misrepresentations about benefits/risks of transaction
Fraud in the factum means that the victim misled about ___
legal instrument they are signing
Hauck says that when an OG transferor is fraudulently induced to sign a deed ___
believing something other than what it really is, title void and cannot be transferred even to GFPV
Hauck held that title was ____ but if P ___
fraud by factum, negligent an estoppel may arise to protect GFPV
Land is not governed by __
UCC
A similar case to Hauck in ND found that deed was ___
only voidable and GFPV could acquire good title
Hauck may be allowing GFPV in case of negligence because __
bad actor in court and so remedy for both parties
In recording system, parties ___ and public official ___
voluntarily file important docs for establishing right to property in public repository, check to ensure format not content nor validity
Recordation has ____ cost
higher ex post
Recordation puts burden on parties ___
to purchase title insurance to prevent upstream risks
Registration system means that parties ___ and public official ___
bring docs to be publicly recorded, sorts out state of title
Registration requires ___ cost
higher ex ante
Problem with registration system
potential for corruption/bias by public officials
There is ____ to inquire where cash came from
no duty
Recording creates ____ to subsequent purchasers
constructive notice
Race recording
first to record has better claim (even if she has notice)
Under race statute, if A sells to B then to C but C records before B __
C gets title, notice or not
Notice statute
subsequent GFPV wins unless she has notice (can be actual, constructive or inquiry, rec
what is notice under notice statute
(can be actual, constructive or inquiry, record is notice
Under notice statute, if A sells to B then to C but C no notice of A-B then __
title to C
Under race-notice statute, subsequent GFPV only wins if ___
she has no notice and records before B
Shelter rule says that you can have notice grantee competing with another grantee if ____
recorded properly + acted in good faith (claim is sheltered)
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.
C not GFPV but still wins over A because B all attributes of ownership once wins over A
Under shelter rule, B cannot ___
transfer to O
If deed outside of title search it does not ___
afford constructive notice
Wild deed is when grantee ___
records before her grantor
You cannot benefit from nemo dat if trace ownership to __-
wild deed
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 ___
wild because B wouldn’t be found in chain of title
Mother Hubbard clause is when deeds have ___ and they are only valid to __
general description of collection of land without enumerating, parties but not constructive notice to subsequent purchasers
Recording acts only protect __
good faith purchasers for value
If no one recorded then ___ apply
nemo dat and GFPV
Race notice statutes seem to displace GFPV because __
can’t prevail as GFPV unless also recorded first
Hood says that under race-notice statute, transferee who __
records deed does not have title unless can demonstrate she was GPFV
Hood holds that since ___ could not show they were GFPV and P claim prevailed
conveyance to D lacked consideration/was a gift
Hood dissent says the P should not have been given deed because __
broke all promises to transferor
Under nemo dat, prior legal/equitable interests ___
beats later legal/equitable interest
Where prior equitable interests compete with later legal interests, legal interest prevails only if ___
acquired for value + without notice
___ operates outside recording/title system
AP
Mugass says that proper transfer of clean title does not guarantee ownership if ___
another party established AP
We don’t require APs to record title because __
innocent good faith AP would not be aware they had to do this
Potential remedy to AP recording problem
marketable title set period of 30-40 years beyond which claims extinguished if not on record
Problem with Potential remedy to AP recording problem
possession still provides strongest notice of the claim
