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Recording System

Recording System. Purpose. Resolve priorities between competitors for the same property. [party vs. non-party] Does not impact the relationship between the original parties to the instrument. Example conflicts. Owner grants land to A today and to B tomorrow. Who owns the land?

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Recording System

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  1. Recording System

  2. Purpose • Resolve priorities between competitors for the same property. [party vs. non-party] • Does not impact the relationship between the original parties to the instrument.

  3. Example conflicts • Owner grants land to A today and to B tomorrow. Who owns the land? • Owner mortgages property to A today and to B tomorrow. Whose mortgage has priority? • Owner mortgages property to A today and sells land to B tomorrow? Is B subject to mortgage?

  4. Mechanics of recording • Prepare deed in proper form.

  5. Mechanics of recording • Prepare deed in proper form. • Take deed to proper office.

  6. Mechanics of recording • Prepare deed in proper form. • Take deed to proper office. • Pay fee.

  7. Mechanics of recording • Prepare deed in proper form. • Take deed to proper office. • Pay fee. • Clerk copies document into official records.

  8. Mechanics of recording • Prepare deed in proper form. • Take deed to proper office. • Pay fee. • Clerk copies document into official records. • Document given identification.

  9. Mechanics of recording • Prepare deed in proper form. • Take deed to proper office. • Pay fee. • Clerk copies document into official records. • Document given identification. • Clerk indexes document.

  10. Mechanics of recording • Prepare deed in proper form. • Take deed to proper office. • Pay fee. • Clerk copies document into official records. • Document given identification. • Clerk indexes document. • Original returned to filer.

  11. Searching a title

  12. Recording System[continued]

  13. Recording Systems • 1. Race • First grantee to record wins. • Irrelevant that first to record knows about a prior unrecorded interest. • Used in only a few states

  14. Recording Systems • 2. Race-Notice • Second grantee wins if: • No notice (actual or constructive) of prior interest at time of purchase, and • Records first. • In other words: • Empty head plus • Empty records plus • Records first

  15. Recording Systems • 3. Notice • Second grantee wins if: • No notice (actual or constructive) of prior interest. • No filing needed to protect against prior interest but would need to file to protect against subsequent interest. • In other words: • Empty head plus • Empty records.

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