Chain of Title Prof. David Glazier Feb 6, 2007 PropertyProperty

Today’s Class Recording systems review Recording issues - Messersmith v. Smith Chain of Title - Bd of Ed v. Hughes - Guillette v. Daly Dry Wall Reading for Thursday

Types of Recording Jurisdictions Race – between successive purchasers, the first to record prevails Notice -A subsequent purchaser prevails only if they had no notice of a previous purchase at the time of their transaction ( bona fide purchaser) Race - Notice – between successive purchasers, the first to record prevails unless they had notice of prior transaction

Recording Problem # 1 O conveys Blackacre to A on Feb 1 A records on Feb 2 O conveys Blackacre to B on Mar 1. B has no knowledge of A’s purchase. Who prevails between A and B? Notice System? Race-Notice System?

Recording Problem # 2 O conveys Blackacre to A on Feb 1 O conveys Blackacre to B on Mar 1. B has no knowledge of A’s purchase. A records on Mar 2. Who prevails between A and B? Notice System? Race-Notice System?

Messersmith v. Smith (N.D. 1953) What kind of jurisdiction is this? “Every conveyance... not recorded... shall be void against any subsequent purchaser in good faith and for a valuable consideration... whose conveyance... first is recorded”

Messersmith v. Smith (N.D. 1953) Chronology May 7, 1946 – Caroline gives Fred quitclaim to land Apr 23, 1951 – Caroline gives Smith mineral lease May 7, 1951 – Caroline sells Smith ½ mineral rights May 9, 1951 – Smith sells Seale ½ mineral rights May 14, 1951 – Smith’s lease is recorded May 26, 1951 – Smith’s mineral rights recorded May 26, 1951 – Seale’s mineral rights recorded Jul 9, 1951 – Fred’s quitclaim deed recorded

Messersmith v. Smith (N.D. 1953) Lots of unclean hands here! Caroline: Fred: Smith: The Notary: Seale:

Messersmith v. Smith (N.D. 1953) May 7, 1946 – Caroline gives Fred quitclaim to land Apr 23, 1951 – Caroline gives Smith oil & gas lease May 7, 1951 – Caroline sells Smith ½ mineral rights May 9, 1951 – Smith sells Seale ½ mineral rights May 14, 1951 – Smith’s lease is recorded May 26, 1951 – Smith’s mineral rights recorded May 26, 1951 – Seale’s mineral rights recorded Jul 9, 1951 – Fred’s quitclaim deed recorded Who owns the land? Who should own the minerals? Who does court give them to?

Bonus Question May 7, 1946 – Caroline gives Fred quitclaim to land Apr 23, 1951 – Caroline gives Smith oil & gas lease May 7, 1951 – Caroline sells Smith ½ mineral rights May 9, 1951 – Smith sells Seale ½ mineral rights May 14, 1951 – Smith’s lease is recorded May 26, 1951 – Smith’s mineral rights recorded May 26, 1951 – Seale’s mineral rights recorded Jul 9, 1951 – Fred’s quitclaim deed recorded Who owns the minerals in a notice jurisdiction?

Chain of Title The series of documents affecting ownership and rights to a parcel of land - starts from historic origin - progresses through all subsequent owners to the present - includes deeds, mortgages, covenants, etc. -- both ownership and encumbrances

Board of Ed. v. Hughes (MN 1912) *** What kind of jurisdiction is this?: “[Hughes] was a subsequent purchaser in good faith for a valuable consideration, whose conveyance was first duly recorded...”

Board of Ed. v. Hughes (MN 1912) *** Chronology: O (Hoerger) conveys lot to A (Hughes) 5/17/06 - name of grantee left blank for Hughes to fill in O conveys lot by quitclaim to B (Duryea) 4/27/09 B conveys by wnty deed to C (Bd of Ed) 11/19/09 C records their deed 01/27/10 A fills in his name and records deed 12/16/10 B records his deed 12/21/10 Who should prevail? “Zimmer rule?”

Guillette v. Daly Dry Wall (MA. 1975) 8/67 – O (Gilmore) conveys first lot w/o restriction to A (Walcotts) 3/68 – O records subdivision plan which does not specifically limit lots to single family residences 5/68 - O conveys to B (Guillette) limiting all lots to single family 6/68 – O conveys lot to C (Paraskivas) limiting that lot to single family home 4/72 – O conveys lot to D (Daly) with no specific restriction 8/72 – D learns of restrictions but obtains bldg permit for 36 apartment units - A, B, and C sue to prevent apartment construction

Guillette v. Daly Dry Wall (MA. 1975) Who should prevail? Who does prevail? What is the rule established by the court?

Upcoming Reading Thursday Feb 8 – Title Insurance read pp Walker Rogge v. Chelsea Title - Lick Mill Creek Apt v. Chicago Title No reading for next week

Questions?