Suggested Time to Complete: 10 minutes
Mortgages in the State of Magenta
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This question should be answered in an IRAC format. Please include all relevant key words when describing each topic.
The recording statute in the state of Magenta reads, in relevant part: “Any conveyance of an estate in land, other than a lease for less than one year, shall not be valid against any subsequent purchaser for value, without notice, unless the conveyance is recorded.”
Oli owned Deerland, which was located in the state of Magenta. Oli sold Deerland to April for $100,000. April put the deed in her desk drawer without recording it and left it for an extended sojourn in Taiwan. Oli, aware of April’s departure and seeing an opportunity to make a quick profit, partitioned Deerland and sold the front half, Doeland, to Tommy in exchange for $50,000. Tommy, who knew nothing about April’s interest in the property, promptly recorded his interest. Two months later, Tommy found a job in another city and sold Doeland to Connie in exchange for $55,000. Connie was acquainted with April and was aware of her interest in the property but did not believe that she would return from Taiwan anytime soon. Connie promptly recorded her deed to Doeland. Meanwhile, Oli incurred substantial gambling debts and was in need of immediate funds, so he executed a mortgage on the back half of Deerland that he had retained (Fawnland) to Belletown Savings and Loan in the amount of $40,000. Belletown knew nothing of Oli’s transaction with April but neglected to record its mortgage interest. Six months later, April returned from Taiwan and recorded her deed to Deerland.
If April brings an action to quiet title in Deerland, what is the likely result?
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Magenta’s recording statute will determine the outcome of this question. Think about whether Tommy knew about Oil’s earlier conveyance and whether he promptly recorded his deed. Then, ask the same question about Connie.
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