Hidden Title Risks
Learn about hidden risks within recording systems, how those risks arise, and how they affect title.
Recording systems generally work well, but they’re not foolproof. In this lesson, we’ll discuss situations in which recorded documents fail to provide record notice because they fall outside the discernable chain of title. In these situations, a buyer can be a bona fide purchaser unless the buyer has some other form of notice.
We’ll assume that each problem involves a grantor-grantee indexing system. We’ll discuss these problems in terms of deeds, but the same principles apply to any...