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 Resolve priorities between competitors for the same property. [party vs. non-party]  Does not impact the relationship between the original parties.

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Presentation on theme: " Resolve priorities between competitors for the same property. [party vs. non-party]  Does not impact the relationship between the original parties."— Presentation transcript:

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2  Resolve priorities between competitors for the same property. [party vs. non-party]  Does not impact the relationship between the original parties to the instrument.

3  Owner grants land to A today and to B tomorrow. Who owns the land?  Owner mortgages property to A today and to B tomorrow. Whose mortgage has priority?  Owner mortgages property to A today and sells land to B tomorrow? Is B subject to mortgage?

4  Prepare deed in proper form.

5  Take deed to proper office.

6  Prepare deed in proper form.  Take deed to proper office.  Pay fee.

7  Prepare deed in proper form.  Take deed to proper office.  Pay fee.  Clerk copies document into official records.

8  Prepare deed in proper form.  Take deed to proper office.  Pay fee.  Clerk copies document into official records.  Document given identification.

9  Prepare deed in proper form.  Take deed to proper office.  Pay fee.  Clerk copies document into official records.  Document given identification.  Clerk indexes document.

10  Prepare deed in proper form.  Take deed to proper office.  Pay fee.  Clerk copies document into official records.  Document given identification.  Clerk indexes document.  Original returned to filer.

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13  1. Race  First grantee to record wins.  Irrelevant that first to record knows about a prior unrecorded interest.  Used in only a few states

14  2. Race-Notice  Second grantee wins if: ▪ No notice (actual or constructive) of prior interest at time of purchase, and ▪ Records first.  In other words: ▪ Empty head plus ▪ Empty records plus ▪ Records first

15  3. Notice  Second grantee wins if: ▪ No notice (actual or constructive) of prior interest. ▪ No filing needed to protect against prior interest but would need to file to protect against subsequent interest.  In other words: ▪ Empty head plus ▪ Empty records.


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