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32 Cards in this Set
- Front
- Back
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Two rules for recording system: |
1. If B is a BONA FIDE PURCHASER, and we are in a NOTICE jurisdiction, B wins, regardless of whether or not she records before A does. (A should have recorded to give NOTICE.)
2. If B is a BONA FIDE PURCHASER, and we are in a RACE-NOTICE jurisdiction, liek NY, B wins IF she records properly before A. |
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Who do recording acts protect? |
Bona Fide Purchasers Mortgagees |
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Bona Fide Purchaser |
One who:
1. purchases for value 2. without notice that soemone else got there first. |
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Standard for "value" |
As long as B remits substantial pecuniary consideration. |
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Is a devisee, donee, or heir a purchaser for value? |
No. They are not protected under recording acts, unless they take from a bona fide purchaser. |
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Types of notice |
A.I.R.
1. Actual 2. Inquiry 3. Record |
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Actual notice |
Prior to B's closing, B learns of A. |
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Inquiry notice |
Buyer has duty to inspect before transfer of title, regardless of whether B actually did inspect.
If a recorded instrument makes reference to an unrecorded transaction grantee on notice of whatever a reasonable followup would show. |
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Record notice |
b is on record notice if A's deed was recorded properly within the chain of title. |
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Notice Statute |
If, at the time B take, he is a bona fide purchaser, he wins.
B doesn't have to record to beat A and it does not matter if A records anytime after B takes even if before B. |
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"A conveyance of an interest in land shall not be valid against any subsequent purhcser for value without notice thereof, unless the conveyance is recorded" |
Notice Statute |
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Race Notice Statute |
To prevail, B must be a bona fide purchaser AND must win the race to record. |
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"Any conveyance of an interest in land shall not be valid against any subsequent purchaser for value, without notice thereof, whos conveyance is first recorded" |
Race Notice |
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Chain of title |
Sequence of recorded documents capable of giving record notice. |
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In most states chain of title is established through: |
search of the grantor/grantee index |
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Chain of Title problems |
1. Shelter Rule 2. Wild Deed 3. Estoppel by Deed |
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Shelter Rule |
One who takes from a bona fide purchaser will prevail against any entity that the transferor or bona finde purchaser would have prevailed against.
Steps into the shoes of transferor. |
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O conveys to A, who does not record. O then conveys to B, a bona fide purchaser, who records.
B then conveys to C who is a donee.
In A vs. C who wins? |
C.
Shelter Rule will apply. C steps into the shoes of B. |
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O conveys to A, who does not record. O then conveys to B, a bona fide purchaser, who records.
B then conveys to C who has actual knowledge of the O to A transfer.
In A vs. C who wins? |
C.
Shelter Rule will apply. C steps into the shoes of B. |
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Wild Deed |
If a deed, entered on the records has a grantor unconnected to the chain of title, the deed is a wild deed and thus incapable of giving record notice of its existence. |
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O conveys to A. A does not record. A conveys to B. B records. O conveys to C.
Who prevails in B v. C in notice statute? |
C.
C does not have notice of O-A or A-B because A did not record, thus no chain of title to O.
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O conveys to A. A does not record. A conveys to B. B records. O conveys to C. C records.
Who prevails in B v. C in race-notice statute? |
C.
C does not have notice of O-A or A-B because A did not record, thus no chain of title to O.
Also, even though B recorded before C, that record is a nullity because its is a wild deed. |
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Estoppel by Deed |
One who conveys realty in which he has no interest is estopped from denying the validity of that conveyance if he later acquires the interest he previosly transferred. |
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X conveys to A without title. A records. O conveys to X, X records X sells to B. B records
Who wins in X v. A |
A
X, had no realty to convey, thus he is estopped from denying the validity of the conveyance when he later acquired it. |
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X conveys to A without title. A records. O conveys to X, X records X sells to B. B records
Who wins in A v. B |
B
In notice jursidiction, B wins because he is BFP and A's recording is a nullity.
In race-notice jurisdiciotn, B wins because A recorded too early (before X acquired the land) |
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Delivery is presumed if the deed is: |
1. handed to the grantee, or 2. acknowledged by the grantor before a notary and recorded. |
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A court will never reform a deed that __________. |
as been relied on by a bona fide purchaser |
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Reformation will be granted if the deed does not express what the parties agreed to for any of the following reasons:
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1. It reflects the parties’ mutual mistake; 2. It contains a drafting error; or 3. It reflects one party’s mistake—but only if that mistake was induced by the other party’s misrepresentation or inequitable conduct. |
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Rules of construction for description of property apply: |
1. Natural monuments (e.g., “from Moss Lake to the oak tree”) prevail over all 2. Artificial monuments (e.g., stakes, buildings) prevail over; 3. Course measurements (e.g., “North 25 degrees to Main Street”) prevail over 4. Distance measurements (e.g., “East 45 feet to Grace Street”); and 5. All the foregoing prevail over general descriptions such as name or quantity (e.g.,“10 acres of land known as Blackacre”). |
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If a grantor executes a deed but fails to deliver it during her lifetime, __________. |
Title does not pass |
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Against whom may a grantee invoke the doctrine of estoppel by deed? |
The original grantor only |
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If a deed never was delivered, but the listed grantee discovers the deed and records it, the deed is: |
Void |
