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

2. 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

3. 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

4. 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?

5. 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?

6. 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”

7. 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

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

9. 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?

10. 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?

11. 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

12. 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...”

13. 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?”

14. 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

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

16. Upcoming Reading Thursday Feb 8 – Title Insurance read pp. 623-34 - Walker Rogge v. Chelsea Title - Lick Mill Creek Apt v. Chicago Title No reading for next week

17. Questions?