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17 Cards in this Set

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Classic recording situation: O to A; later, O to B. Same farm.
Common law: first in time, first in right (A wins)
Today, recording statutes may allow B to win.
So on exam, ask if subsequent purchaser can win b/c of the recording act. If not, subsequent purchaser will always lose under common law.
What else do recording acts protect?
Mortgages.
But NOT judgment creditors.
Is recording a deed necessary to make it valid?
No, but it serves to give NOTICE.
What are the different recording acts in place?
1. Notice acts
2. Race-notice acts
3. Pure race acts
Notice acts?
Protect subsequent grantees who are bona fide purchasers, those who give value and who take w/o notice of the earlier transaction.
Race-notice acts?
Protect subsequent grantees who are BFPs for value who take w/o notice AND are first to record.
Pure race acts?
Notice is irrelevant. Whoever records first wins. The subsequent purchaser need not be a BFP; that person can know all about the earlier sale and still win.
Words: without notice or in good faith?
Notice or Race notice.
Words: First recorded or recorded first along with without notice or in good faith?
Race notice.
If just without notice or in good faith, then?
Notice act.
If does not use without notice or in good faith?
Pure race.
BFP?
A bona fide purchaser for value without notice.
What is "for value"?
1. Bargain basement value- subsequent purchaser pays absurdly low price
2. An heir, donee, or devisee is not a BFP.
Key is "out of pocket" to be BFP.
Shelter rule exception?
Anyone (even heirs, donees, devisees) can shelter under rights of a BfP
What are the 3 kinds of "without notice" that can defeat a subsequent purchaser?
1. Actual notice
2. Record notice
3. Inquiry notice
Record notice?
Constructive notice that arises from the record. It must be recorded in the chain of title, not just that it was recorded at courthouse.
Inquiry notice?
1. Subsequent purchaser has to check out where something in deeds might disclose an unrecorded transaction
2. Subsequent purchaser must make inquiry of unexplained possession or uses (by examining land)