What is a race notice recording statute?
Race-Notice Statute. Under a race-notice statute, a later purchaser of an interest has the priority interest if the later purchaser is a bona fide purchaser and records the interest first in time. The bona fide purchaser cannot have constructive, actual, or inquiry notice of any other claim against the property.
What are the three types of recording statutes and how do they differ?
There are three basic kinds of statutory schemes in recording acts: race, notice, and race/notice. Even though a recording act does not require recordation, the law does create strong incentive for a buyer to record.
What is a BFP in real estate?
Also known as BFP, bona fide purchaser for value, good-faith purchaser, innocent purchaser for value, purchaser in good faith. Innocent purchaser of property who purchases for value without notice of any other party’s claim against the property.
What would terminate an easement?
There are eight ways to terminate an easement: abandonment, merger, end of necessity, demolition, recording act, condemnation, adverse possession, and release.
Which recording statute is most common?
The most common recording statute is the race notice statute. The proper recording in the public records of a real property mortgage will put subsequent purchasers on actual notice of the mortgage.
Who protects recording act?
The purpose of the Recording Acts is to protect people who have acted in good faith and paid value for property. (The concept of “good faith” entitles one to act promptly and reasonably and is usually implied in every contract).
What happens if you dont record a mortgage?
If the borrower on a recorded mortgage defaults, the lender can foreclose and either be paid in full or receive the property. However, if a mortgage or deed of trust was not recorded, the lender cannot foreclose against the property, just against the defaulting borrower personally.
What must happen before a mortgage can be recorded?
Before a mortgage is filed on the property, it must be signed by a representative from the lender and the borrowers. There is also a place for someone to sign as a witness to the transaction. Anyone whose name is on the deed must sign the mortgage. Your spouse must sign even if they are not on the mortgage.
How do you prove a bona fide purchaser?
In a position taken as bona fide purchaser, it should be established by a fair preponderance of the evidence and the fact of notice may be inferred from the circumstances as well as proved by direct evidence.
What is the difference between a grantor and a grantee index?
One list is the grantor index, an alphabetic list of sellers (grantors). The other list is the grantee index, an alphabetic list of purchasers (grantees). In a typical county in the United States, the index is kept by an official known as the County Recorder (or the Recorder of Deeds).
What does it mean to surrender an easement?
Surrendering an easement contain the prescribed information set out in the Regulations, and. be executed by the grantor and grantee.
What is the main purpose of all recording statutes?
The general purpose of recording statutes is to permit (rather than require) the recordation of any instrument which affects the title to or possession of real property, and to penalize the person who fails to take advantage of recording.
Which of the following persons is protected by the recording laws?
The recording laws protect those who rely on what is contained in the public records. c. An acknowledgement is a formal declaration made before some public officer, usually a notary public, by a person who has signed a real estate document or other instrument stating that the signature is genuine and given freely.
What is formal recording?
formal. the act or process of recording something in the official records.
What is the purpose of recording a mortgage?
The purpose of recording is to establish priority, who was there first, who was there second. For example, a first mortgage is called a first mortgage because that lender was the first to record. A second mortgage is called a second because that lender was the second to record. So, by recording you establish priority.