1. Recording System 2011©Cengage Learning. All Rights Reserved.

2. NATURE AND EFFECT OF RECORDING Recording Optional Effect of Recording Constructive Notice 2011©Cengage Learning. All Rights Reserved.

3. Recording Requirements Acknowledgment Preliminary Change of Ownership Report Transfer Tax Stamps Bona Fide Purchaser 2011©Cengage Learning. All Rights Reserved.

4. Actual or Constructive 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. 2011©Cengage Learning. All Rights Reserved.

5. Priorities Determining Priority Document Must Be Indexed 2011©Cengage Learning. All Rights Reserved.

6. Title Insurance 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. 2011©Cengage Learning. All Rights Reserved.

7. GENERAL PRIORITIES Unrecorded Documents Effect of Recording Race–Notice Recording Statute Effect of Improper Recording Curative Statute 2011©Cengage Learning. All Rights Reserved.

8. Effect of Notice Actual Notice Constructive Notice 2011©Cengage Learning. All Rights Reserved.

9. Chain of Title refers to a chronological history of all documents affecting title to a certain property. instrument must be properly recorded to be part of chain. 2011©Cengage Learning. All Rights Reserved.

10. Transferee of a Bona Fide Purchaser 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. 2011©Cengage Learning. All Rights Reserved.

11. SPECIAL PRIORITIES Mechanic’s Liens  Contractor must record within 60 days  all other mechanics have 30 days  With notice of completion mechanics have 90 days Judgment Liens  Junior  Superior 2011©Cengage Learning. All Rights Reserved.

12. Future Advances under DT Obligatory Advances Optional Advances 2011©Cengage Learning. All Rights Reserved.

13. LIS PENDENS “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 2011©Cengage Learning. All Rights Reserved.

14. RECORDING LIMITS 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. 2011©Cengage Learning. All Rights Reserved.

15. Periods 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. 2011©Cengage Learning. All Rights Reserved.