Real Property: Recording Acts
Under MA's Recording Act:
Under a notice statute, a subsequent BFP need not record in order to prevail over a prior grantee who failed to record. A notice statute requires only that the subsequent purchaser have no AIR *BUT MA DOES NOT RECOGNIZE INQUIRY NOTICE*
Race-Notice Statute
Under a race-notice statute, *a subsequent purchaser who pays valuable consideration, takes without notice of the prior conveyance, and records before a prior grantee prevails over the prior grantee.* A race-notice statute is a recording act that alters the common law rule of "first in time, first in right" to protect a subsequent bona fide purchaser ("BFP")—i.e., one who pays valuable consideration and lacks notice of the prior conveyance. However, to obviate questions about the time of delivery and to induce parties to record promptly, race-notice statutes protect BFPs only if they are first to record.
Describe the Shelter Rule
*A donee from a bona fide purchaser of the land can be protected as a BFP of land.* Under the shelter rule, *anyone who takes from a BFP will be treated like a BFP (i.e., will prevail against any interest her transferor would have prevailed against)* This rule exists to protect the BFP by preserving his ability to convey property. It applies even when his transferee had actual knowledge of a prior unrecorded interest or did not take for substantial pecuniary value (i.e., was a donee). However, a non-BFP who previously had title cannot acquire BFP status by selling the land to a BFP and then repurchasing it.
What type of Recording Statute is 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.
*Notice statute* 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.
What type of Recording Statute is 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.
*Race-Notice* statute To Prevail, Buyer must (1) Be a *BFP* and (2) *win race to record*
What are the requirements to be a BFP for the purposes of the recording acts?
1) buy BA for *value* and 2) no notice of prior interest at time B takes (under BOTH notice & race notice, if A PROPERLY records, B looses).
Against whom may a grantee invoke the doctrine of estoppel by deed?
A grantee may invoke the estoppel by deed doctrine against the original grantor only.
Someone who purchases land over which several recent tire tracks pass, leading to an adjacent parcel, will be charged with __________ notice of the adjacent landowner's unrecorded easement.
Someone who purchases land over which several recent tire tracks pass, leading to an adjacent parcel, will be charged with inquiry notice of the adjacent landowner's unrecorded easement. *Inquiry notice means that a subsequent grantee is held to have knowledge of any facts that a reasonable inquiry would have revealed, even if he made no inquiry.* A title search is not complete without an examination of the property. A purchaser is charged with notice of whatever a reasonable inspection of the property would have disclosed and with anything that would have been disclosed through an inquiry of the possessor or occupier. Similarly, the physical appearance of the land may give notice of an adverse interest (e.g., an easement). *MA DOES NOT RECOGNIZE INQUIRY NOTICE FOR THE PURPOSES OF IT'S NOTICE RECORDING ACT*
Are mortgagees protected under the recording act?
Yes, provided it was a mortgage for value (always unless it's a mortgage securing a preexisting debt).
What is the rule of the wild deed
if a deed, entered on the records (A to B) has a grantor unconnected to the chain of title (O to A), the deed is a wild deed and is INCAPABLE of giving RECORD notice of it's existence.
Describe the Doctrine of Estoppel By Deed
if a grantor purports to convey an estate that he does not then own, his subsequent acquisition of title to the property automatically inures to the benefit of that grantee. (sorta an implied promise to convey if and when the double dealer ever gets title and is estopped to deny that he acquired title on the grantee's behalf) Note also that under the rule of the wild deed if the original grantee records the deed, a subsequent purchaser will not be charged with record notice (and thus could be a BFP) because the grantor's earlier deed would be outside the subsequent purchaser's chain of title.
