Real Property

Define: Title theory states

(In title theory states, the mortgagee actually holds legal title until the mortgage is fully paid.)

There are 3 types of notice that a buyer could be charged with, name them:

1) Actual Notice 2) Inquiry Notice 3) Record Notice

When a mortgagor transfers the property, the buyer either ...? 2 things:

1) Assumes the mortgage 2) Takes the property subject to the mortgage.

To be a bona fide purchaser, a grantee must: (3 things)

1) Be a purchaser (or a mortgage lender), not one who received the property by gift, will, or inheritance 2) Pay valuable consideration 3) Take without notice (actual, constructive, or inquiry) of the prior conveyance

What are the defenses to the underlying obligation/enforcement of the mortgage?

1) Duress 2) Mistake 3) Fraud 4) Other Contract Defenses

How can a mortgagee transfer her interest?

1) Endorsing the note and delivering it to the transferee 2) Executing a separate document of assignment

An easy way to spot the different statutes is to look for the words "notice" and "first" 1) "First" only equals what? 2) "Notice" only equals what? 3) "Notice" & "First" equals what?

1) Race Statute 2) Notice statute 3) Race-Notice Statute

Be prepared on the bar exam for any one of three chain of title problems:

1) The shelter rule 2) Wild Deeds 3) Estoppel by deed

There are 3 types of recording statutes, name them:

1) race statutes, 2) notice statutes, 3) race-notice statutes

The mortgage transaction involves two documents:

1) the promissory note 2) the mortgage

There are two types of mortgages, name them

1) the purchase money mortgage 2) the non-purchase money mortgage

Executing a valid deed requires the following: (4 prongs)

1. A writing signed by the grantor 2. An unambiguous description of the land 3. Identification of the parties by name or description 4. Words of intent to transfer / consideration

There are three types of deeds classified according to the promises they contain:

1. Quitclaim deed 2. The general warranty deed 3. The special warranty deed

The general warranty deed typically contains all 6 of the following covenants: name them

1. Seisin 2. Right to convey 3. The Covenant Against Encumberances 4. The covenant of quiet enjoyment 5. The covenant of warranty 6. The covenant for further assurances

Every land transaction involves a two step process:

1. The land contract 2. Closing

There are three common situations where a deed is delivered to a third party:

1. Transfer to Third Party without Conditions 2. Transfer to Third Party with Conditions (Escrow Transaction) 3. Donative Escrow with Conditions

The language of a typical RACE STATUTE looks like this:

A conveyance of an estate in land shall not be valid against a subsequent purchaser for value unless the conveyance is first recorded.

Typical NOTICE STATUTE language looks like this:

A conveyance of an interest in land, other than a lease for less than one year, shall not be valid against any subsequent purchaser for value, without notice thereof, unless the conveyance is recorded.

A deed containing a written condition is generally valid when delivered. If the condition is the granter's death, the deed creates what type of interest in the grantee?

A future interest/executory interest

A mortgage creates what type of interest in land?

A security interest

In 1950, O owns Blackacre. He is thinking about selling it to X, but for now decides against it. In 1950, X, who does not own Blackacre, sells it anyway, to A. A records. In 1960, O finally sells Blackacre to X. X records. In 1970, X, a double dealer, sells Blackacre to B. B records. As between X and A, who owned Blackacre from 1960-1969?

A. Because of estoppel by deed. -------------------------------------------------------------- Who owned blackacre in 1970? B as long as he is a BFP. -------------------------------------------------------------- Why does B win? Because he is the last BFP to enter. In a notice system, the last BFP to take, wins. -------------------------------------------------------------- Why would B win here over A in a (pure) race statute state? B wins the race to record because B's title searcher would never find A's 1950 deed, because A's 1950 recording is too soon, it's a nullity. A's deed would not have been connected to any larger chain of title. -------------------------------------------------------------- Is a title searcher entitled to assume that no one sells land until they first own that land? Yes. -------------------------------------------------------------- What should A have done here before recording? Title search. This would have uncovered that X had nothing to convey to A in the first place

Typical RACE-NOTICE language looks like this:

Any conveyance of an interest in land, other than a lease for less than one year, shall not be valid against any subsequent purchaser for value, without notice thereof, whose conveyance is first recorded.

B is O's heir, or devisee, or donee. In a recording statute question, what happens to B?

B loses UNLESS the shelter rules applies. Remember recording statutes do not protect donees, heirs, or devisees.

O conveys Blackacre to A. Later, O conveys Blackacre, the same parcel, to B. O, our double dealer, has skipped town. In the battle of A v. B, who wins If B is a bona fide purchaser and we are in a race-notice jurisdiction?

B wins if B records properly before A does.

O conveys Blackacre to A. Later, O conveys Blackacre, the same parcel, to B. O, our double dealer, has skipped town. In the battle of A v. B, who wins If B is a bona fide purchaser and we are in a notice jurisdiction?

B wins, regardless of whether or not B records before A does

The recording act only protects who?

BFPs

At what time must a marketable title claim be brought against the seller if the seller has breached its implied promise to provide marketable title to buyer?

Before or right up until closing. -------------------------------------------------------------- After closing, can buyer bring a claim for the breach of the implied promise in the land contract that the seller will provide marketable title to the buyer? No, if Buyer wants to bring this claim it must be brought before the closing.

What is significant about inquiry notice and record notice?

Both are forms of constructive notice. Meaning that both could apply regardless of B's actual notice of A.

O sells blackacre to A, who does not record. then A sells to B. B records the A-to-B deed. O, then sells Blackacre to C. Assume that C has no actual or inquiry knowledge of the O-to-A or A-to-B conveyances. C then records. O has skipped town. In the contest of B vs. C, who prevails?

C. Does it matter whether this a notice or a race-notice jurisdiction? No. Because C is a BFP who wins the race to record and C is the last BFP to enter and had no actual or constructive notice of the previous transfers.

O conveys to A, who does not record. Later, O conveys the same parcel to B, a BFP, who records. B then conveys to C, who is a mere donee or who has actual knowledge of the O to A transfer. In the contest of A vs. C, who prevails?

C. C steps into B's shoes here--Shelter rule. C gets to step into the shoes of her grantor/transferror B.

Landowner conveys Blueacre to Ash. Ash does not record. Ash conveys Blueacre to Bela, who purchased for value and promptly records. Landowner then conveys Blueacre to Carys, a bona fide purchaser. Carys promptly records. As between Bela and Carys, who will be deemed the owner of Blueacre?

Carys Explanation: The Ash to Bela deed is a wild deed, which is not in Carys's chain of title. The Landowner to Ash link is missing. There is no way for Carys to discover it.

What does a land contract pass from the seller to the buyer?

Equitable Title

Bona fide purchasers do not prevail over prior transferees in notice jurisdictions, true or false?

False, bona fide pruchasers do prevail over prior transferees in notice jurisdictions. They also prevail in race-notice jurisdictions if they win the race to record

In a notice system, the last BFP to take, loses. True?

False.

A general rule is that a mortgagee cannot freely transfer the note, and the mortgage will not always follow the note it secures. True or False?

False. The general rule is that a mortgagee can freely transfer the note, and the mortgage will always follow the note it secures.

O conveys a deed to blackacre that is absolute on its face, but says to the grantee, "blackacre is yours only if you survive me." What is the effect of the oral condition?

Grantee has title to Blackacre immediately. The oral condition is meaningless.

what is the covenant of quiet enjoyment?

Grantee will not be disturbed in possession by a third party's lawful claim of title. Here the grantor is promising: "Hey grantee, you are not going to be disturbed in possession because of some third party's lawful claim of superior title to blackacre, because there is no such third party out there."

What is Right to Convey?

Grantor promises that she has the power to transfer. What does this mean? There are no temporary restraints on alienation. No temporary restrictions on the grantor's ability to sell of transfer blackacre. Grantor is under no disability Ie: She is of the requisite age She is of sound mind

What is seisin?

Grantor promises that she owns this estate. "I own the estate that I am now purporting to transfer to you. I'm not a fraud."

What is the covenant against encumberances?

Grantor promises that there are no servitudes or liens on blackacre.

What is the covenant of warranty?

Grantor will defend grantee against any superior title claims.

Define a wild deed:

If a deed entered on the records has a grantor that is unconnected to the chain of title, the deed is a wild deed. Even though it has been recorded, it has not been properly recorded.

What's the difference between: 1) Assumes the mortgage 2) Takes the property subject to the mortgage?

If a grantee assumes the mortgage, they're agreeing to be personally liable on the mortgage note. If they take the property subject to the mortgage, they are not agreeing to personal liability; the mortgagee's only recourse is foreclosure (they cannot maintain a suit against the grantee).

Amy will be charged with notice of, earlier in time John's, deed on the property if...?

If at the time Amy takes, John's deed was properly recorded within the chain of title. What does this mean? You did a requisite title search and John's existence is nowhere within any chain of title search.

Define: Lien theory states

In lien theory states, the mortgagee is not entitled to possession of the property before foreclosure. The mortgagee may take possession, though, if the mortgagor either consents to it or has abandoned the property.

If someone else is in possession, what is B charged with?

Inquiry notice, regardless of whether she bothered to expect or not.

What is a quitclaim deed?

It contains no promises. Literally, the seller is basically stating that he promises absolutely nothing. It is the worst deed a buyer can secure.

Define a non purchase money mortgage

It is a mortgage made, or a lien in blackacre, to secure a debt encumbered by the debtor for purposes other than making the purchase of this very parcel.

Define a purchase money mortgage:

It is an extension of value by a lender, who takes as collateral a security interest in the very parcel that its loan enables the debtor to acquire in the first place. A lends money to B to purchase a home, and A takes a security interest in B's home.

Define: Inquiry Notice

It is whatever an examination of the land would show.

Define: the shelter rule:

It states that one that takes from a BFP gets to prevail against any entity that the transferor/BFP would have prevailed against. In other words, one who takes from a BFP, takes shelter in the BFP's status of her transferor, regardless of whether or not she meets or fails to meet on her own elements of BFP status.

What does LED stand for ?

Lawfully Executed & Delivered

What does a deed pass from the seller to the buyer?

Legal Title

Most states embody which theory? Lien Theory or Title Theory?

Lien Theory. Meaning that they view a mortgage as a lien.

While either the mortgagee or the mortgagor may transfer their interest, on the bar exam, you're far more likely to encounter a transfer by the ...?

Mortgagor

N/A

N/A

Can a mortgagee foreclose if the mortgage is discharged?

No

Apple has been paying $500 per month on her mortgage from Bank. She recently fell on hard times and hasn't made any mortgage payments in months. She still owes Bank $20,000 on the loan. Bank sends Apple notice of foreclosure, and the foreclosure date is set for March 30. Does Apple have to pay the full $20,000 before the sale to save the property?

No Explanation: Unless the mortgage document contains an acceleration clause, Apple may redeem the property by paying the amount "in default" plus any accrued interest. She does not have to pay the full amount owing on the loan.

O sells blackacre to A, who does not record. then A sells to B. B records the A-to-B deed. Is the A-to-B deed connected to the chain of title?

No. The "O-to-A" link is missing from the records. What is this problem an example of? A wild deed

Now, later in life, Jack and Rebecca, having paid off that mortgage in full, seek to borrow $100,000 from Valley Finance to help finance their children's education, granting Valley a security interest in their home. Which form of mortgage is this?

Non-purchase-money mortgage

[Practice Problem, Audrey Skip] O mortgages Blackacre to the Bank. Some time later, O sells Blackacre to A, and A agrees to assume the mortgage. Some time later, A sells Blackacre to B, "subject to the mortgage to the Bank." B fails to pay the mortgage, and the Bank forecloses. Blackacre is sold for less than the balance due on the mortgage. Who can the Bank sue for the deficiency? Check all that apply. O A B

O & A. Not B. The Bank can sue O because O signed the note. The Bank can also sue A because A assumed the note. The Bank cannot sue B, however, because B did not assume the mortgage; B took Blackacre subject to the mortgage. Although B can't be sued for the deficiency, as the facts state, B has lost the property to foreclosure.

How many states have a pure race statute?

Only a few

Define: Priorities

Priority among interests in foreclosure is the most heavily tested aspect of mortgages. The default rule is that the priority of a mortgage depends on when it was placed on the property. First in time, first in right again. A buyer at a foreclosure sale takes the title as it existed when the foreclosed mortgage was placed on the property. All interests senior to that one remain on the property, and all interests junior to that one are extinguished. Those interests include junior mortgages, liens, leases, easements, and all other types of interests.. Need to chop this up into multiple flashcards. These terms are also in the secured transactions notes from Barbri on One Note--type in "deficiency"

A deed MUST be recorded ______?

Properly

Jack and Rebecca borrow $100,000 from Bank to finance their purchase of a home, granting Bank a security interest in that new home to collateralize the loan. Which form of mortgage is this?

Purchase-Money Mortgage With respect to the mortgage, the term used to describe Jack and Rebecca is: Mortgagors With respect to the mortgage, the term used to describe Bank is: Mortgagee

If the earlier in time party, A, properly records the deed before later in time, B's closing, B would be charged with what?

Record notice of A's earlier in time existence. Therefore, B would not be considered a...? BFP (Bona fide purchaser)

What was created to replace the old common law rule?

Recording

Define Redemption:

Redemption refers to the mortgagor's ability to recover the property once they are in default. Extra: There is redemption in equity, which allows the mortgagor to redeem the property before the foreclosure sale, and a statutory right of redemption, which is recognized in about half the states and allows the mortgagor to redeem for a period of time after the foreclosure sale.

Define a Due on Sale Clause

Technically, a mortgagor doesn't need the mortgagee's permission to transfer the mortgage. But In reality, most mortgages contain a clause that allows the mortgagee to demand full payment of the mortgage loan if the mortgagor transfers the mortgage without the mortgagee's consent.

What is a general warranty deed?

The best deed that a buyer could take is the general warranty deed. It warrants against all defects in title, including those due to grantor's predecessors. This is the best deed for a buyer because it contains a host of promises or covenants that grantor makes not just on behalf of herself, but on behalf of her predecessors in interest.

Define a mortgagor:

The borrower / The debtor

The seller's liability for title defects is governed by ...?

The covenants of title contained in the deed.

If a deed, absolute, on its face, no conditions or strings attached, is transferred to the grantee with an alleged oral condition, what result?

The grantee takes the property because the deed is deemed to be delivered. The oral condition drops out.

What is The covenant for further assurances (Future Covenant)?

The grantor promises to do what is needed in the future to perfect the title if it turns out to be imperfect. This covenant is a housekeeping or a ministerial sort of a promise. Here the grantor is saying, look, whatever future actions are needed to be undertaken by me to perfect the title, if later you discover that it is somehow flawed in some way, find me, I'll be a good faith cooperator.

Define a mortgagee:

The lender / The Creditor

Define mortgage

The mortgage is the agreement that says that if the mortgagor quits paying, the land can be sold to pay the mortgagee.

What happens at common law if a grantor conveys property or an interest in property to more than one grantee?

The rule was first in time, first in right. But this created problems.

What is the chain of title?

The sequence of recorded documents able to give record notice of their contents.

Define a promissory note:

This is the mortgagor's personal obligation

Define: Foreclosure

This is the process by which the mortgaged property is sold at auction, and the mortgagor's interest in it is terminated.

How is the chain of title established in most states?

Through title search of the grantor-grantee index.

Define: RACE-NOTICE Statute

To be protected under a race-notice statute, the SUBSEQUENT PURCHASER must not have any notice of the prior grant and record first.

A deed is not effective to transfer an interest in realty unless it has been delivered, true?

True

A lender's betrayal or violation of the dodd frank act is available as the basis for the mortgagor to undue the lender's foreclosure action. True?

True

Foreclosing on the property is not the mortgagee's only recourse in the event of default—they can sue the mortgagor on the note for payment of the debt if the mortgagor quits paying. True or False?

True

Inquiry notice tells us that the buyer of real estate, whether she bothers to check out blackacre prior to closing or not, still has a duty to check out the land before title is transferred, to see for example, whether someone else happens to be in possession. true or False?

True

Recording statutes do not protect mere donees or heirs or devises. True or false?

True

The mere act of recording a deed, if done improperly, is of no legal benefit or effect. True or False?

True

True or False: Generally, when a mortgagor transfers title to the property, the grantee automatically takes the property SUBJECT TO THE MORTGAGE?

True

True or False? If the underlying loan is unenforceable, so is the mortgage.

True

True or False? The dodd Frank ACt requires that residential mortgage lenders first determine the debtor's ability to repay before making the loan in the first place.

True

You are put on inquiry notice whether you bothered to inspect the property or not. True or False?

True

True or False, the terms of the loan have to be understandable, they have to be scrutable--they better not be unfair or deceptive.

True (Dodd Frank Act)

In our model, if A had taken possession, B would be on inquiry notice of that fact, thereby defeating B's status as a BFP. True or False?

True.

To give record notice to subsequent takers, it's not enough for the examiners to tell you that the deed has been recorded, true or false?

True. The deed must be recorded ________ ? Properly. The deed must be recorded properly within _________? The chain of title.

Define: Notice Statute

Under a notice statute, a subsequent purchaser who had no notice of a prior conveyance by the grantor will prevail over a prior grantee who failed to record.

Define: (Pure) Race Statute

Under a pure race statute, notice of a prior conveyance by the grantor to the grantees doesn't matter. The first party (grantee) to record wins.

Do all recording statutes apply to mortgages as well as deeds?

Yes

[Practice Problem, Audrey Skip] On January 10, Madge took out a $50,000 mortgage on Blackacre with First Bank. First Bank promptly and properly recorded its interest on January 10. Thereafter, on January 15, Madge sold Blackacre to Buyer. Buyer had no actual knowledge of the lien. Buyer promptly and properly recorded its deed. Does Buyer hold subject to First Bank's mortgage?

Yes

[Practice Problem, Audrey Skip] Assume now that on January 10, Madge took out a $50,000 mortgage on Blackacre with First Bank. On January 15, Madge sold Blackacre to Buyer. Buyer had no knowledge of the mortgage. On January 20, First Bank recorded its mortgage in Blackacre. On January 30, Buyer recorded his deed to Blackacre. Does Buyer hold subject to First Bank's mortgage in a race-notice jurisdiction? Does Buyer hold subject to First Bank's mortgage in a notice jurisdiction?

Yes No

B paid $50,000 cash for Blackacre, when its fair market value is estimated at $100,000. Is B a purchaser for value?

Yes, As long as.....? B pays substantial pecuniary consideration

Is extrinsic evidence allowed to explain/show grantor's intent/conduct?

Yes, all types of evidence, including the grantor's conduct or statements before or after the alleged delivery are admissible to prove the grantor's intent to pass title. Outside evidence is not permitted to show that an unconditional deed given directly to a grantee was subject to a condition.

In a dispute over a recording statute, what is the first thing that you must look to before you even get into which recording statute is imposed?

You must look to whether the purchaser: 1) bought for value 2) and at the time of the closing, the purchaser had no idea (no form of notice) that there was another purchaser who had gotten the title first.

To show her appreciation for going above and beyond, an executive presented her assistant with a deed to a small parcel of land. By the end of the year, the executive had lost her job and found herself financially strapped. She told the assistant that unfortunately she changed her mind and needed to sell the property. The assistant destroyed the deed, and the executive conveyed the property to a buyer. Who owns the property? Answer choices are: a. the assistant b. the buyer c. the executive

a. the assistant Explanation: The assistant owns the property. The deed was properly delivered to the assistant and passed title to him. Destruction of the deed does not cause title to pass back to the executive. The assistant would have had to have executed a new deed conveying the parcel back to the executive. Since the executive did not have title, she could not convey title to the buyer.

A wine dealer conveyed a small vineyard to an investor by quitclaim deed. The investor promptly recorded. In fact, the wine dealer did not own the vineyard at the time of the conveyance. The vineyard belonged to his uncle. Sometime later, the uncle conveyed the vineyard to the wine dealer. The wine dealer then sold the vineyard to celebrity and conveyed it by warranty deed to the celebrity. The celebrity and investor both sue to quiet title. Who owns the vineyard? a. the investor b. the celebrity c. the wine dealer d. the uncle

b. the celebrity Explanation: The celebrity owns the vineyard. When a grantor who conveyed property without title subsequently gets title, title usually vests in the prior grantee under the doctrine of estoppel by deed. But estoppel by deed only applies to grantees who take by warranty deed. Here, the investor took a quitclaim deed. Since his grantor did not have title and he took only the interest of his grantor, the investor does not have any claim to title for the vineyard. The wine dealer had title when he conveyed the vineyard to the celebrity, so the celebrity takes good title and should prevail in the quiet title suit.

An uncle wishes to give his cabin to his nephew, who lives across the country. The uncle decides to wait until the holidays to give him the deed in person. He draws up the deed, acknowledges it, and gives it to his lawyer to record. The lawyer promptly records it. Shortly before the holidays, the uncle dies suddenly. Who owns the cabin? Answer Choices: a. the uncle's estate b. the nephew

b. the nephew Explanation: The nephew owns the cabin because delivery is presumed by recording. It makes clear that the uncle intended to part with control immediately. Since acceptance is presumed unless there is an express rejection, the delivery is complete and the nephew owns the cabin.

A trespasser on a vacant lot conveys the lot to an investor by quitclaim deed. The investor later conveys the lot by general warranty deed to a dentist, and the dentist builds a home on the land. Seven years later, the true owner ejects the dentist from the land. The statute of limitations on warranty of title actions is four years. If the dentist sues the investor, is she likely to prevail? Answer choices: a. yes, because the investor should have been on notice because of the quitclaim deed b. yes, because the investor breached the covenants of quiet enjoyment and warranty c. no, because the contract has merged with deed. d. No, because the statute of limitations has run on the covenants of seisin and right to convey

b. yes, because the investor breached the covenants of quiet enjoyment and warranty Explanation: The dentist will prevail because the investor conveyed to her by warranty deed. The warranty deed contains both present and future covenants. The future covenants of quiet enjoyment and warranty aren't breached until the grantee is actually disturbed in possession. Here, the grantee has been ejected by the true owner and so can sue for breach of those warranties. The present warranties of seisin and right to convey, which promise that he grantor has title and the power to convey it, are breached at the time of conveyance. Thus, the statute of limitations has run on those warranties. The fact that the contract has merged with the deed does not affect the grantee's right to recover for breach of warranty of the covenants of title because those are contained in the deed, not the contract. The fact that the investor took by quitclaim deed does not impart notice and would not affect the his conveyance to the dentist

Define: constructive notice:

basically it's that you are on notice whether or not you ACTUALLY KNOW about the sale/transfer

While a woman was away climbing Mt Everest, an opportunity arose to sell a parcel she had been trying to sell for some time. After coming to an agreement with the buyer, the woman's daughter drew up a deed. Not sure how to spell the buyer's name, the daughter left a blank for the buyer's name and failed to include the purchase price. The daughter signed her mother's name on the deed and gave it to the buyer in exchange for the purchase price. The buyer didn't know the daughter wasn't the owner, and the mother was happy the parcel was sold. If the buyer later seeks to reverse the deal, which of the following grounds would a court likely use to invalidate the deed? Select all that apply. Answer choices are: a. the lack of purchase price b. the lack of buyer's name c. the daughter's signature

c. The daughter's signature Explanation: A court will likely void the deed based on the forged signature. Deeds that are forged are void. Here, although the mother seems to have ratified the conveyance and the buyer was a bona fide purchaser, the deed is void because the signature was forged. The failure to fill in the buyer's name is not a likely ground to void the deed. Although a deed must identify the parties, courts will presume that the person taking delivery is authorized to fill in the name of the grantee. Unlike the contract of sale, the purchase price is not something that is necessary in a deed

A retired businessman wrote a letter to a friend stating that he wanted to give her his condo, but he didn't mail the letter. Instead, the businessman validly executed a deed and gave both the letter and the executed deed to the lawyer, telling her to give them to the friend on his death. The man continued to live on the property until his death one year later. At his death the lawyer recorded the deed and sent the letter and deed to the friend. Shortly thereafter, his will was admitted to probate; it left all of his property to his girlfriend. If the friend brings a quiet title action, what is the likely result? Answer choices: a. the girlfriend will take the condo because the deed was not properly delivered b. the girlfriend will take the condo because the businessman remained in possession after he executed the deed c. the friend will take the condo because the deed was validly delivered d. the friend will take the condo because the letter supplies the intent needed to convey.

c. the friend will take the condo because the deed was validly delivered explanation: The friend will take the condo because delivery to the lawyer was valid delivery. A grantor may deliver a deed to an escrowee with instructions to deliver it when certain conditions, such as death of the grantor, are met. When the condition occurs, title passes automatically to the grantee. The fact that the grantor remained in possession of the property has not effect. The letter, though helpful is not needed. The delivery of the deed to the lawyer with instructions was sufficient to show intent to convey.

If no one in a problem set is a BFP, then what rule applies?

common law rule of first in time, first in right.

So, any subsequent purchaser will have what type of notice of the conveyance?

constructive

Define: Recording

gives notice to the world that title to property has been transferred.

Estoppel by deed rule:

one who conveys realty in which he has no interest (that was X in the above fact pattern) is estopped from denying the validity of that pre-acquisition of title conveyance, when he subsequently acquires the interest that he had previously purported to transfer (the 1960 O to X sale). Estoppel by deed shot back in time in 1960 to A's rescue.

Delivery turns on?

the grantor's intent that title pass immediately, even if possession is postponed.

If the subsequent grantee does not qualify as a BFP, they are not protected by...?

the recording act and the common law rule of first in time applies.

Recording a wild deed is the same as never recording, true or false?

true