The Recording System

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1
Persons Protected by the Recording System
Bona Fdide Purchases (BFPs) or mortgagees or persons claiming through such persons.
2
What 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
5
Types 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
7
An unrecorded name change.
Wild Name
8
A deed outside the chain of title.
Wild Deed
9
Is a "wild name" a problem with a parcel index?
No.
10
A 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
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