FINALS BLOGGING SERIES: PROPERTY II*
The Recording System or "that check ain't worth the paper its written on..."
Here is a quick outline on The Recording System:
- Establishing Chain of Title
- Grantor-Grantee
- documents affecting parcel of land are recorded in order of the grantor and grantee
- Searches are ran until root of title is established (either CL or Statute)
- Gap --> Burden falls on seller to clean up chain of title.
- Tract index
- Documents affecting parcel of land are listed per index for parcel.
- Recording acts
- Purpose: Establish priority persons have to parcel of land
- Types
- Race: i.e "First in line saves a dime"
- Race/Notice: i.e "Tag! Who said we were playing tag?"
- Subsequent BFP/creditor who first records prevails against person claiming prior unrecorded interest as long as purchaser did not have notice of preceding interest upon acquisition of interest.
- Notice established
- Constructively: Purchaser deemed to know all matters contained in legally recorded deed records, w/o search.
- Actual: Physical search of records, etc...
- Inquiry: Purchaser hears or sees something that a normally prudent person would inquire about.
- Notice: "At closing time, it's all mine"
- Subsequent BFP/creditor prevails over claimants as long as subsequent purchasers acquires title w/out notice of prior claim.
- Primary purpose: Protect subsequent bona fide purchasers for value.
* Standard Rules Apply (See below)
