Notice
favorite thing to do?
i love Zoo
When does recording become important?
When two or more parties claims that the owner has conveyed the property to them.
Under a race statute, when would a prior claimant lose to a subsequent claimant?
if the subsequent claimant records first.
Under a race-notice statute, when would a prior claimant lose to a subsequent claimant? (hint: 3 requirements)
if the subsequent claimant:
(1) is a Bona Fide Purchaser for Value
(2) Lacked notice of prior claimant's claim at the time of purchase
(3) records first
Who would win in this scenario in a notice statute:
O, the owner of Blackacre, conveys Blackacre to
A, who does not record her deed. O then conveys Blackacre to B, who pays value, does not have actual or inquiry notice of A’s deed, and does not record his deed.
B wins. Although B did not record his deed, B prevails over A because B paid value
and did not have notice of A’s deed; B did not have actual or inquiry notice of A’s deed and B could not have constructive.
What are the three types of notice?
actual notice, constructive notice and inquiry notice
What is a bona fide purchaser for value?
A bona fide purchaser for value (BFP) refers to a person who acquires property (such as real estate or goods) in good faith, for valuable consideration (i.e., money or something of equivalent value), and without notice of any prior claims, defects, or issues affecting the title of the property.
What does it mean for a prior claimant to win?
gain title to disputed property
In a race-notice statute, who must record first?
a prior claimant must record before a subsequent purchaser does.
True or false: The prior claimant must record before the subsequent purchase occurs.
True.
When does actual notice occur?
when the claimant first learns about someone else's prior claim from a reliable source.
Who counts as a bona fide purchaser for value?
a purchaser, even if below market value, so long as not a mere token price AND
a lender who accepts a deed in lieu of foreclosure
True or False: Subsequent claimant has to be a Bona Fide Purchaser of Value in a race statute.
False.
Who would win in this scenario in a race-notice statute:
O, the owner of Blackacre, conveys Blackacre
to A, who does not record her deed. O then conveys
Blackacre to B, who pays value, does not have actual orinquiry notice of A’s deed, and promptly records his deed. A then records her deed. B prevails over A because B paid
value, did not have notice of A’s deed, and recorded first.
B wins because B paid value, did not have notice of A’s deed, and recorded first.
Finish the statement: In a notice statute that references subsequent purchasers for value, there is NEVER A RACE BECAUSE...
The subsequent purchaser does not yet exist when the prior claimant must record before the subsequent purchase occurs.
when does constructive notice occur?
exists when the prior claimant records their interest in the recording office (courts deems this as the whole world is NOW on notice of this claim)
who does not count as a bona fide purchaser for value?
a person who inherits property or receives property as a gift is not a bona fide purchaser for value
Fill in the blank: Under a race statute, the person who records first ______.
"wins/prevails"
Finish this statement: In the absence of a recording statute, prior claimant defeats subsequent claims because ___ ____ ____, _____ ____ _____"
"first in time, first in right"
What gives constructive notice to any possible subsequent purchase under a notice statute?
recording prior to the subsequent purchase
When does inquiry notice occur?
this exists when claimant first learns of circumstances that would cause a reasonable person to believe a prior claimant exists and so should lead that claimant to investigate
Finish the statement: We never care whether the _____ _____ is or is not a bona fide purchaser for value.
prior claimant
Who would win in this scenario in a race statute:
O, owner of Blackacre, conveys Blackacre to A, who does not record her deed. O then conveys Blackacre to B, who pays value, immediately records his deed, and has actual notice of A's deed.
B will prevail over A because B recorded first, even though B has notice.
Fill in the blank for race-notice statute below:
no interest in real property shall be good against subsequent purchasers for a valuable consideration and without notice ___.
"who record first"
Under a notice statute, when would a prior claimant lose to a subsequent claimant?
if the subsequent claimant is
1. a bona fide purchaser for value and
2. lacked notice of the prior claimant's at the time of the purchase