Pro: Rekording Suyst

Front 1

What is the purpose of the recording system?

Back 1

a.It protects existing owners from losing their property to later purchasers.
b.Protects new buyers: search to see if the seller is able to give good title.

Front 2

How did the common law deal with notice and subsequent deeds/mortgages?

Back 2

A valid title or lien existing an enforceable at law is never cut off or affected by a subsequent deed or mortgage executed by the same vendor or owner to another person, whether purchases for value or not. (Can’t give what you don’t have.)

Front 3

What are the 2 systems of indexing in US?

Back 3

Grantor-Grantee &

Tract

Front 4

Define grantor-grantee indexing

Back 4

Data about each deed or other title document is organized alphabetically according to the names of the parties involved and the year the transaction occurred

Front 5

Explain the steps to using the grantor-grantee index system.

Back 5

i.Search backward in the grantee-grantee index. Start with the grantee that you know, and go all the way back until the land’s patent (a grant of title by the state).
ii.Search forward in time in the grantor-grantee index looking at every grantor to see if there were any conveyances.
iii.Read and evaluate documents that affect title. Check them for the necessary formalities, consistency of legal description and names. Be alert for any references in them to unrecorded documents to interest.
iv. Check for adverse interest in relevant sources outside of the county land records, such as tax and assessment liens, bankruptcies, judgment liens, etc.

Front 6

Define tract indexing

Back 6

All entries are organized according to the identity of the parcel involved, regardless of the names of the parties. This is easier then grantor-grantee index

Front 7

Explain the steps to using the tract indexing system.

Back 7

i.Locate the page for a particular tract.
ii.All transactions regarding this tract will be found here

Front 8

Explain how recorded documents provide constructive notice.

Back 8

a.Recorded documents provide constructive notice:
i.Meets the formal requirements for recording.
ii.Contains no technical defects
iii.Recorded in the chain of title
iv.Properly indexed

Front 9

Explain how a recorded deed can provide different types of notice to people depending on their interest in the property

Back 9

No Interest in property: A recorded deed is constructive notice to the entire world, but it is only actual notice to those who are bound to search for it

Front 10

What about unrecorded deeds?

Back 10

i.An unrecorded deed is binding upon the grantor, his heirs and devisees, and all persons having actual notice of it, it is not valid and effectual as against any other persons.
ii.A purchaser of land has a right to rely upon the information furnished him by the registry of deeds, and in the absence of notice to the contrary he is justified in taking that information as true

Front 11

What are 2 examples of recorded documents that don't provide constructive notice?

Back 11

Defective Documents

Documents outside Chain of Title

Front 12

Give examples of defective documents

Back 12

1.Invalid acknowledgment: a recorded document that fails to meet formal requirements.
2.Incorrect name: significant errors in names (messes with grantor-grantee index).
3.Incorrect property description: the description needs to be accurate so that a title searcher could both find the recorded document and determine that it concerned the land in question

Front 13

How can documents fall outside the chain of title?

Back 13

1. Adverse possession
2. those that are not recorded properly
a.The recording of a deed without indexing is insufficient to give constructive notice to a bona fide purchaser for value
b.Other J take the different view that the grantee must suffer the consequences, and remedy against the recording office.
3.Prior document recorded too early
4.Prior document recorded late
a.Wild Deed: a prior conveyance from a grantor who is outside of the recorded chain of title

Front 14

What is the effect of recording a void deed?

Back 14

A void deed, though recorded, is still void and a purchaser of realty from a person holding under a void recorded deed, though in fact a bona fide purchaser cannot obtain a good or valid title

Front 15

How does adverse possession affect recording?

Back 15

a.Since recording statutes relate exclusively to written titles, a conveyance of the record title to a bona fide purchaser will not extinguish a title acquired by adverse possession.
b.After a judgment on adverse possession, it will be on the title thereafter

Front 16

What happens in a pure race jurisdiction?

Back 16

The grantee who first places his deed on the proper records prevails over the other conveyances from the common source of title. The first Grantee for value to record is protected even though he took with notice of a prior unrecorded conveyance

Front 17

What happens in a Race-notice jurisdiction?

Back 17

This act requires that the subsequent purchaser be without notice at the time of the conveyance is made and the consideration paid. In addition, the subsequent buyer without notice must record first to be protected by the system

Front 18

What happens in a notice jurisdiction?

Back 18

Protect the junior conveyee against a prior unrecorded conveyance if he has paid value and is without notice. This differs from race notice because it doesn’t matter who records, the last to get the conveyance hold superior title

Front 19

Why is someone who takes real property by will or devise not protected by the recording system?

Back 19

B/c all of the statutes refer to "purchasers"

Front 20

Define bona fide purchaser in an notice jurisdiction.

Back 20

a subsequent purchaser who pays valuable consideration for an interest in real property, without any notice of an interest that a third party already holds in the land. Thus we have three things to consider (subsequent purchaser, for value, without notice)

Front 21

What is a subsequent purchaser under the Recording Acts?

Back 21

anyone who acquires any interest in land. Only the subsequent purchaser requires shelter of the recording act. A prior purchaser is first in time, and accordingly protected under the common law rule, unless there is a subsequent bona fide purchaser

Front 22

Explain the concept of value per the recording system.

Back 22

For Value: one must pay value (thus donees, devisees, and heirs are not purchasers for value)

Front 23

How much is enough value under the recording system?

Back 23

Grantee need not pay full market value, but must be more than mere nominal value. (The smaller the purchase price, the greater the risk that it will be held invalid.)

Front 24

As far as value is concerned, what are the minority and majority views as far partial payment of consideration?

Back 24

a. Minority: this is insufficient to make one a bona fide purchaser.
b. Majority: apply a pro tanto rule, and protect the buyer to the extent of the payment made prior to notice, but no further. (Give the cash back to buyer, give fractional interest in land as to the amount paid, allow buyer to complete purchase – but pay the other holder of interest the rest needed)

Front 25

Can debt constitute paying value under the recording system?

Back 25

the mortgagee or other creditor who makes a loan and receives an interest in real property to secure payment of the debt is considered a purchaser for value. (They are protected by the recording act). There are two exceptions, pre-existing debt is not seen as value, and a creditor who obtains a judgment lien

Front 26

How is lessee defined under the recording system?

Back 26

Lessee: is a purchaser under the recording act

Front 27

Under Recording Acts, at what point in the Tx is purchaser's knowledge measured?

Back 27

At the time of delivery and not later

Front 28

What is actual notice under the recording system?

Back 28

person who knows a prior interest exists

Front 29

What is record notice under recording system?

Back 29

notice that could be obtained by searching land records

Front 30

What is inquiry notice under recording system?

Back 30

If a purchaser has actual notice of facts that would cause a reasonable person to inquire further, he is deemed to know the additional facts that inquiry would uncover where he inquired or not.
1.Arises when either:
a.notice from possession of land; and
b.notice from a reference in a recorded document

Front 31

Explain the doctrine of bona fide purchaser for value without notice under the recording system

Back 31

If a 2nd purchaser for value and without notice purchases for a first purchaser who is charged with notice, he thereby becomes a bona fide purchaser, and is entitled to protection. (Simply put, no matter what the people before the person without notice knew, so long as the he is a bona fide purchaser without notice, he meets the requirements.)

Front 32

What is the exception to the doctrine of bfp for value w/o notice under the recording system?

Back 32

a good title can’t be conveyed, free from prior equities, back to a former owner who was charged with notice.
If a second purchaser with notice acquires title from a first purchaser who was without notice, and bona fide purchaser, he succeeds to all the rights of his immediate grantor

Front 33

What is a constructive trust under the recording system?

Back 33

A constructive trust can be imposed wherever one unfairly holds title or a property interest and where the holder would be unjustly enriched if permitted to retain such interest. Specifically, the acquisition of property through the fraudulent misrepresentation of a material fact constitutes sufficient grounds to fasten a constructive trust on the property