1. Why Record
1.1. Recording is designed to solve disputes with subsequent grantees and tracks liens on the property
1.2. The recorder is
1.2.1. ministerial
1.2.2. designed to index the instrument by noting a description of in an index
1.2.3. Two types
1.2.3.1. Grantor-Grantee indexes
1.2.3.1.1. Most Common
1.2.3.1.2. Alphabetical record of all grantees by surname with a separate volume of all grantors by surname
1.2.3.1.3. contains the date, names of parties to the transaction, a brief desc. of the property and instrument, and a citation to the copy of the instrument.
1.2.3.2. Tract Indexes
1.2.3.2.1. All transactions to a single parcel in one location
1.3. Recording provides constructive notice to the world of the conveyance
1.3.1. failure to consult the record still results in the presumption of such knowledgee
1.3.2. Failure to record results in the application of the common law fule
1.3.2.1. can still result in the conveyance to the later purchaser.
2. Conducting a title search
2.1. Identifies all past title transactions to determine present state of title
3. Common Law
3.1. Priority in time
3.1.1. = priority in conveyance
3.1.2. modified by all states by recording statutes
3.2. BonaFide Purchaser for value
3.2.1. Will win in dispute if no prior recorded claims
3.2.2. Purchaser for Value
3.2.2.1. must give good and valuable consideration for the interest at issue.
3.2.2.1.1. Donee beneficiary gets no protection and inherited title is not protected
3.2.2.2. most allow lein holders to be a purchaser for value
3.2.3. Bona Fide when
3.2.3.1. have no notice of any previous conveyance of title.
3.3. Notice
3.3.1. Occurs with
3.3.1.1. actual knowldge
3.3.1.2. recorded title
3.3.1.2.1. notice based upon recorded instruments.
3.3.1.3. possession (by inquiry)
3.3.1.3.1. Constructive notice
3.3.1.3.2. If possession has occurred, the reasonable purchaser would establish notice because they are deemed to take title if not questioned.
3.3.1.3.3. Fact based notice that would cause a reasonable person to make inquiry into the existence of an interest in real property
3.3.2. primary function of the recording system.
3.3.2.1. Leads to distinction of recording jurisdictions.
3.4. WILL ALWAYS PREVAIL UNLESS BUYER MEETS RECORDING ACT QUALIFICATIONS
4. Modernly, the recording act will set qualifications that the buyer must meet to be protected.
4.1. Types of Recording Jurisdictions
4.1.1. Race act Jurisdiciton
4.1.1.1. Provides that as b/w 2 grantees, the earliest record will prevail
4.1.1.2. notice does not matter
4.1.2. Notice act Jurisdiciton
4.1.2.1. Subsequent bona fide purchaser w/o notice of a prior unrecorded transfer prevails over prior purchaser who has failed to record.
4.1.2.1.1. even if the subsequent purchaser does not record, they will still prevail
4.1.3. Race-notice Act Jurisdiction
4.1.3.1. Protects subsequent bona fide purchaser only if they fail to record before the prior purchaser
4.2. In Michigan, the burden of proof for the recording is held by the grantee who questions
4.2.1. presumption that the grantee that records is a purchaser of value.