![]() Constructive notice is imputed to a party who lacks personal information or knowledge and arises from the proper recordation of instruments in the local county clerk’s office. For example, A knows that O sold Blackacre to B because B told him. A party possesses actual notice when they have personal information or knowledge of a prior conveyance. In short, a purchaser can be charged with two types of notice: actual and/or constructive notice. To qualify as a bona fide purchaser, an individual must purchase land for value and without notice of any prior conveyance. The Texas Recording Act is a “notice” statute, meaning a subsequent bona fide purchaser, without actual or constructive notice, will receive superior title to the property. (b) The unrecorded instrument is binding on a party to the instrument, on the party's heirs, and on a subsequent purchaser who does not pay a valuable consideration or who has notice of the instrument. (a) A conveyance of real property or an interest in real property or a mortgage or deed of trust is void as to a creditor or to a subsequent purchaser for a valuable consideration without notice unless the instrument has been acknowledged, sworn to, or proved and filed for record as required by law. The Texas Recording Act can be found in Section 13.001 of the Texas Property Code, which provides: Therefore, if A acquires land without notice of any prior conveyances, actual or constructive, A acquires superior title. A notice statute protects a subsequent purchaser who acquires an interest in property without notice of a prior unrecorded conveyance. ![]() Therefore, if A purchases land for value, without notice of any prior conveyances, and records first, A acquires superior title. A race-notice statute protects a subsequent purchaser who purchased land for value, without notice of any prior conveyance, who records first. Therefore, if A records before B, A acquires superior title, regardless of any type of notice or knowledge of other conveyances. There are three basic types of recording statutes: race, race-notice, and notice.Ī race statute protects a subsequent purchaser who records their conveyance first, regardless of whether the subsequent purchaser had notice of any prior conveyances. A bona fide purchaser is someone who purchases land for value, and without notice of any prior conveyance. Recording statutes limited the common law rule and were enacted to provide notice regarding the state of title and protect subsequent bona fide purchasers by providing an equitable remedy. However, over time the common law has been supplemented by statutory enactments and equitable doctrines, the two often overlapping. Therefore A, being the first to receive Blackacre, would receive superior title over B. Under the common law, the principle of “first in time, first in right” controls. Who has superior title to the property? A or B? O has skipped town and is nowhere to be found. B, without knowledge of the prior conveyance to A, promptly records his deed in the local county records. Thereafter, O conveys Blackacre, to B for value. ![]() O conveys Blackacre to A for value, but A does not record the deed.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |