Recording System
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NATURE AND EFFECT OF
RECORDING
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Recording Optional
Effect of Recording
Constructive Notice
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Recording Requirements
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Acknowledgment
Preliminary Change of Ownership Report
Transfer Tax Stamps
Bona Fide Purchaser
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Actual or Constructive
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Actual notice is simply notice or information
about a fact derived from a person’s five
senses.
Constructive notice may be the notice
imparted by law from the recording of a
document.
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Priorities
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Determining Priority
Document Must Be Indexed
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Title Insurance
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Protects most of the purchasers and
encumbrancers against conflicting claims.
Title companies research the recorded
documents.
Protects the owner or encumbrancer for the
period of ownership of the property or lien.
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GENERAL PRIORITIES
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Unrecorded Documents
Effect of Recording
Race–Notice Recording Statute
Effect of Improper Recording
Curative Statute
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Effect of Notice
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Actual Notice
Constructive Notice
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Chain of Title
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refers to a chronological history of all
documents affecting title to a certain property.
instrument must be properly recorded to be
part of chain.
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Transferee of a Bona Fide Purchaser
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Once a BFP has priority over other interests,
that BFP can transfer that interest to
someone else, and that transferee would take
the same priority held by the transferor.
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SPECIAL PRIORITIES
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Mechanic’s Liens
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Contractor must record within 60 days
all other mechanics have 30 days
With notice of completion mechanics have 90
days
Judgment Liens
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Junior
Superior
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Future Advances under DT
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Obligatory Advances
Optional Advances
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LIS PENDENS
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“litigation pending”
Anyone who acquired an interest in real
estate during the pendency of a lawsuit took
the property subject to that judgment.
Use by Some Attorneys inhibiting the
marketability of the property
Release by Bond
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RECORDING LIMITS
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the law set up time limits for all existing and
newly recorded liens.
After a specified period, the document will
have no recording effect.
Period specified by statute can be extended
by filing a notice of intent to preserve interest.
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Periods
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A deed of trust or mortgage becomes
unenforceable 10 years after the date of the
last payment.
Option to purchase expires six months after
its stated termination date.
Powers of termination expire 30 years from
the date of recordation unless extended
another 30 years by a notice.
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