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    Recording Statutes

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    Stacy Oliveira
    Recording statutes require grantees of real property to record their deeds to provide notice to others of the transfer of title. There are three types of recording statutes: race, notice, and race-notice. Under a race statute, the first to record has priority. Under a notice statute, a bona fide purchaser who records first is protected even if they had notice of a prior unrecorded transfer. Race-notice statutes protect subsequent bona fide purchasers who record before a prior transferee. Recording statutes protect interests like life estates, easements, and mortgages from prior unrecorded transfers.

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    Recording Statutes

    Uploaded by

    Stacy Oliveira
    42 views2 pages
    Recording statutes require grantees of real property to record their deeds to provide notice to others of the transfer of title. There are three types of recording statutes: race, notice, and race-notice. Under a race statute, the first to record has priority. Under a notice statute, a bona fide purchaser who records first is protected even if they had notice of a prior unrecorded transfer. Race-notice statutes protect subsequent bona fide purchasers who record before a prior transferee. Recording statutes protect interests like life estates, easements, and mortgages from prior unrecorded transfers.

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    Recording statutes require grantees of real property to record their deeds to provide notice to others of the transfer of title. There are three types of recording statutes: race, notice, and race-notice. Under a race statute, the first to record has priority. Under a notice statute, a bona fide purchaser who records first is protected even if they had notice of a prior unrecorded transfer. Race-notice statutes protect subsequent bona fide purchasers who record before a prior transferee. Recording statutes protect interests like life estates, easements, and mortgages from prior unrecorded transfers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    42 views2 pages

    Recording Statutes

    Uploaded by

    Stacy Oliveira
    Recording statutes require grantees of real property to record their deeds to provide notice to others of the transfer of title. There are three types of recording statutes: race, notice, and race-notice. Under a race statute, the first to record has priority. Under a notice statute, a bona fide purchaser who records first is protected even if they had notice of a prior unrecorded transfer. Race-notice statutes protect subsequent bona fide purchasers who record before a prior transferee. Recording statutes protect interests like life estates, easements, and mortgages from prior unrecorded transfers.

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    © All Rights Reserved
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    of 2

    Recording Statutes

    A. Common Law
    At common law, in nearly all cases, priority was given to the first grantee.

    B. Purpose of Recording
    Recording statutes require a grantee of real property to record her deed or other conveyance so
    as to give notice to the world that title to certain property has been conveyed.

    C. Types of Recording Statutes


    There are three types of recording statutes: race, notice, and race notice.

    1. Race Statutes
    Under a pure race statute, whoever records first wins. Actual notice of a previous unrecorded
    conveyance is irrelevant.

    2. Notice Statutes
    Notice and race-notice statutes are designed to protect a bona fide purchaser (“BFP”)—one who
    gives valuable consideration and has no notice of the prior conveyance. Under a notice statute, a
    BFP will prevail over a prior transferee who failed to record before the new conveyance.

    3. Race-Notice Statutes
    Under a race-notice statute, a subsequent BFP is protected only if she records before the prior
    transferee. A typical race-notice statute provides: 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 was first recorded.

    D. Types of Notice
    The three types of notice that preclude BFP status are actual, constructive, and inquiry notice.

    1. Actual Notice
    A transferee cannot be a BFP if she actually knew about a prior unrecorded conveyance.

    2. Constructive Notice
    Regardless of whether the transferee actually searched the records, she cannot be a BFP if the
    prior conveyance was recorded in the chain of title.

    3. Inquiry Notice
    A transferee is considered to have knowledge of any facts that a reasonable inquiry into the
    ownership status of the property would have revealed.

    E. People Protected by Recording Statutes

    1. Devisees Under Wills


    Devisees under wills generally are BFPs. True or false?
    .

    2. Giftees of BFPs
    People who receive real property as gifts from BFPs can generally assert the rights of a BFP
    against prior transferees under the shelter rule.
    F. Interests Protected by Recording Statutes
    Recording statutes apply to short-term leases and interests arising by operation of law. True or
    false?
    Recording statutes apply to life estates, easements, and mortgages. True or false?
    When mortgages are involved, recording statutes affect the, but not the, of the mortgages.

    G. Title Searches
    County governments generally keep indexing systems for people to search recorded real estate
    records.

    1. Tract Index System


    In a tract index system, the searcher can view all of the recorded conveyances of a particular
    piece of property in one place.

    2. Grantor-Grantee Index System


    When using a grantor-grantee index system, the searcher first uses the grantee
    index to determine the previous owners of the property, and then uses the grantor index to
    determine whether the property was conveyed or mortgaged to anyone outside of the
    chain of title.

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