A subsequent BFP (person who pays $ and has NO ntc of prior instrument) prevails over a prior grantee who failed to record.

- KEY is that BFP had NO actual or Constructive NTC at the time of conveyance

**when you see "promptly recorded" or "did not record" triggers a notice discussion

 - the subsequent BFP is PROTECTED regardless of wheter he records at all

Actual Notice - KNOWLEDGE from any source

Record Notice - charged w/ notice ONLY if conveyances are recorded and appear in the chain of title

Inquiry Notice - purchaser is required to make reasonable inquiries into the land

A subsequent BFP is protected ONLY if she takes w/out NTC AND records before the prior grantee

*remember purchaser MUST be w/out notice at the time of conveyance 

IT does NOT matter if they learn of the adverse claim AFTER the converyance but BEFORE recording

Every K contains this implied warranty. Doesn't have to be perfect title (This is a contractual warranty)

IF closing has not occurred, can use IWM ONCE CLOSING then can sue on IWM then buyer can look to deed for remedies

*here K and Deed merge

Contains the covenants

1. Right to convey - authority to make grant

2. Seisen - has the estate which the grantor purports to convey

3. Encumbrances - no physical (encroachments) or titles (mortgages)

4. Quiet Enjoyment - grantee will not be disturbed by possession rights from 3rd party

5. Warranty - Will defend against claims of title by 3rd party

6. Further assurances - will perform acts to perfect title conveyed

MNE - Can't See Warren's Ass

CSEEWA

In a K for the sale of real property, 

buyer/grantees rights for defect in title is found in whatever deed they received

*applies only AFTER deed has been delivered and accepted

Valid Deed - must be in writing, signed by grantor, and identifies parties and the land

Delivery - Grantor's intention to make the deed presently effective EVEN if possession is postponed

- once delivered can't be cancelled or taken back. If you want to return title to grantor, must draw up new deed and re-deliver it back

*oral condition is given after delivery = condition disregarded

- if condition is written in the deed itself, then condition is valid

Acceptance - need acceptance for delivery of deed

Life tenant is entitled to ordinary uses and profits of the land

However, cannot lawfully do any act that would injure the interests of the person who owns or the remainderman or owns reversion

No Affirmative Waste - cannot consume natural resources

No Permissive Waste - has duty to make repairs and pay taxes/mortgage interest

No Ameliorative Waste - cannot substantially improve prop

A future interest is a present, legally protected right in property

Types of future interests are:

Possibility of Reverter/Right of Entry - Follows FSD 

Reversions - Always vested, not subject to RAP

Remainder - Follows LE - never follows a Fee simple b/c cannot divest

Contingent Remainder - interest created that may or may not become possessory due to condition or its creation in a unborn or unascertained person

Rule in Shelley's Case

At CL - where freehold estate (usually LE) was given to A (by will or intervivos xfer), AND in the same intrument, a remainder was limited to the "heirs" or the "heirs of the body" of A, and the freehold estate and the remainder were BOTH equitable, the puported REMAINDER in the HEIRS was not recognized and A took a freehold estate and a remainder.

Rule is abolished in most states modernly.