1Persons Protected by the Recording System
Bona Fdide Purchases (BFPs) or mortgagees or persons claiming through such persons.
2What does title insurance protect?
Protects the buyers
3• E.g. “No conveyance or other instrument is valid as against purchasers, etc. for consideration but from the time of recordation.”
• First to properly record within the chain of title wins.
• Only Louisiana and N. Carolina have race statutes applicable to conveyances; a few other states have race statutes for mortgages.
Race Statute
4• E.g. “No conveyance, etc. is valid as against purchasers, etc. without notice, unless recorded”
• Unrecorded conveyance is invalid as against BFP w/o notice.
Notice Statute
5Types of Notice
(CAR)
(1) Constructive Notice
(2) Actual Notice
(3) Race Notice
6• A grantee has this type of notice when the contents of any properly recorded and indexed document in the chain of title.
• Doesn't work if there's “wild deed” or "wild name".
Constructive Notice
7An unrecorded name change.
Wild Name
8A deed outside the chain of title.
Wild Deed
9Is a "wild name" a problem with a parcel index?
No.
10A legal doctrine whereby a person's misspelled identity is sufficient to correctly identify someone.
• Idem Sonans
• (“the same”) + (“sounding”).
• Majority Applicable ; Minority Inapplicable
11• Grantee has this type of notice if there are facts about the property or state of title that would suggest to a RP that further inquiry is merited.
• Physical condition of land may provide this as an unrecorded easement or servitude.
Inquiry Notice
12• “No conveyance, etc. is valid as against purchasers, etc. without notice, unless first recorded”
• Unrecorded conveyance is invalid as against
• BFP w/o notice who records first
• Actual, constructive and inquiry notice: same as above
Race-notice