Class 24: Title Assurance

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Class 24 Title Assurance

• Property Law
• Fall 2006
• Professor Petherbridge

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Overview

• Recording Acts and Examples
• The Contents of Recorded Material
• Luthi v. Evans
• Orr v. Byers
• Chain of Title Problems
• Board of Education of Minneapolis v. Hughes
• Guillette v. Daly Dry Wall, Inc.

Petherbridge
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Recording Statutes Race

• As between successive purchasers for value, the
  person who wins the race to record wins.
• Merits?

Petherbridge
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Recording Statutes Notice

• As between successive purchasers, a subsequent
  purchaser for value and without notice wins.
• Merits?

Petherbridge
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Recording Statutes Race/Notice

• In a race-notice jurisdiction, to be protected
  the subsequent purchaser must be (1) a BFP and
  (2) record first.
• Merits?

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Problem 1

• Act No conveyance or mortgage of an interest in
  land is valid against any subsequent purchaser
  whose conveyance is first recorded.
• O conveys Greenacre to A on Wednesday. A does
  not record. The following Friday, O conveys
  Greenacre to B. On the next Monday, B records,
  the next day, A records.
• How does the outcome differ if B knows of the
  deed from O to A before A purchases?

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Problem 2

• Act No conveyance or mortgage of an interest in
  land is valid against a subsequent purchaser for
  value without notice thereof whose conveyance is
  first recorded.
• O conveys Goldenacre by deed to Alice, who does
  not record. Six months later B purchases
  Goldenacre from O, knowing nothing of the O to A
  deed. A then records, followed by recording by
  B.
• If B records first?

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Problem 3

• Act No conveyance or mortgage of an interest in
  land is valid against any subsequent purchaser
  for value without notice thereof, unless the same
  be recorded.
• O conveys Redacre to A, who does not record the
  deed. B, ignorant of the deed from O to A,
  purchases Redacre from O receiving a deed. A
  records. Then B conveys to C.

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Problem 2, page 582.

• O conveys Whiteacre to A, who does not record. O
  subsequently conveys to B, who purchases in good
  faith and for valuable consideration, but does
  not record. A then records and conveys to C. C
  purchases in good faith and for valuable
  consideration. B records. C records.
• Who prevails in a notice jurisdiction?
• Who prevails in a race-notice jurisdiction?

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Luthi v. Evans

• What recording act?
• Did the assignment convey the Kufahl lease?
• Why does the court find that the assignment,
  although recorded, does not provide constructive
  notice?
• In a jurisdiction that does not follow this rule,
  what would Burris have had to do?
• If the assignment described the Kufahl lease, how
  would this case have come out?

Petherbridge
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Orr v. Byers

• What is Idem Sonans?
• Is it common knowledge that everyone knows the
  different spellings of proper names?
• When will a spelling be so unusual that a person
  cannot be expected to think of it?

Petherbridge
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Bd. of Ed. of. Minneapolis v. Hughes

• Some Facts
• 1906-05-17 O delivers deed not identifying
  grantee to purchaser Hughes.
• 1909-04-27 O conveys to DW, the deed is not
  recorded.
• 1909-11-19 DW convey to Board
• 1910-01-10 Board records.
• 1910-12-16 Hughes writes his name on the 1906
  deed and records it.
• 1910-12-21 O to DW deed is recorded.
• When does Hughes become a purchaser? Why does
  this matter?

Petherbridge
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Bd. of Ed. of. Minneapolis v. Hughes
Owner
DW (not recorded)
Board
Hughes
-What will Hughes find when he searches? -In a
notice jurisdiction? -In a race
jurisdiction? -Would a tract index be useful
here?
Petherbridge
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Guillette v. Daly Dry Wall

• Some Facts
• Developer (2 recorded plans, no restrictions).
• 1967-08 O conveys to W, deed restricts the use
  of Ws lot, but none of Os lots.
• 1968-05 O conveys to Guillette, deed restricts
  the use of Guillettes lot and states the same
  restrictions are hereby imposed on the seller.
• 1968-06 O convey to P, deed restricts Ps use,
  but not Os.
• 1972-04 O conveys to Daly, no restrictions.
• What are Ds plans for the lot?
• What will D find when he searches his chain of
  title?
• What does the SJC require of title searchers? Is
  it too much?

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END
Petherbridge