Notice vs. Race Notice Jurisdiction - How to Differentiate Between the Two on the MBE and MEE

-

             There seems to be some legitimate confusion within the UBE subject of Property concerning the difference(s) between Notice and Race Notice Jurisdiction.  This blog post is designed to clean up some of that confusion.

BAR EXAM NOTE – It is crucial to pay close attention to the verbiage used in an MBE or MEE fact pattern as that is our first indication as to whether we are dealing with a notice or race notice statute.  A typical “notice” statute will read something like this:

“No conveyance is valid against a subsequent bona-fide purchaser who has no notice of the original conveyance, unless the conveyance is first recorded.”

A typical “race-notice” statute will read something like this:

“No conveyance is valid against a subsequent bona-fide purchaser who has no notice of the original conveyance and who has recorded the deed to his conveyance first.”

In other words, the second purchaser, to prevail, must be a bona-fide purchaser and must record his deed before the first purchaser does.

Now, as to the definitions of these statutes, please note that notice jurisdiction means a jurisdiction whose rule allows a subsequent bona-fide purchaser to prevail over an earlier purchaser if the earlier purchaser’s deed was not recorded and the subsequent purchaser did not know of the earlier transfer.

As for race notice jurisdiction, this means that a jurisdiction whose rule allows a subsequent bona-fide purchaser to prevail over an earlier purchaser if, and only if, the subsequent purchaser did not know of the earlier transfer and the subsequent purchaser’s deed was recorded before the first purchaser’s deed.

In short, Race notice = Look for word "first" in statute. The word "first" is indeed in your MBE Q's statute? Apply race-notice. Notice = Did you look for the word "first" in the statute? And you did not find the word "first"? Apply Notice.

 

Lastly, do not forget the extra rule where someone who purchases from a bona fide purchaser, even with notice, still gets to keep if he records first in a race-notice jurisdiction otherwise known as the “Shelter Rule.”

Perhaps this chart will be of some use:



Conclusion

            It is extremely important to understand the difference between Notice and Race Notice statutes / jurisdictions.  Success on the likely 2-3 MBE questions in this area of law, and perhaps success on a MEE issue depends on your knowledge of the law. For more information concerning this section of Property law, another area of Property law, or a different legal topic tested on the UBE, please do not hesitate to contact us at PassYourBarExam@gmail.com

Comments

Post a Comment

Popular posts from this blog

Defamation on the UBE - A Step by Step Guide for the MBE and MEE

-
The tort of defamation can be rather confusing on the UBE, not just in terms of its elements and/or the applicable defenses, but more so because the MBE and MEE questions on defamation can be rather confusing.  In fact, defamation ranks as one of the top two most difficult areas of tort law along with Products Liability!   This blog post has been written to try and clean up some of the confusion associated with this tort.  For starters, let us begin with the three elements of defamation:   1 – W e need a defamatory stmnt made by the defendant that specifically identifies the plaintiff; 2 – We need a publication of that stmnt and;                    3 – Resulting d amage .   BAR EXAM NOTE – If the plaintiff is a PRIVATE PERSON? They must prove that the statement was made with NEGLIGENCE .  Conversely, if the plaintiff is a PUBLIC FIGURE ?   They m...
Read more

Per Capita vs. Per Stirpes - Making Sense of the Difference for the MEE on the UBE

-
Image
One of the more common areas of confusion within the subject of Wills is the distinction between the two methods of intestacy distribution known as Per Capita and Per Stirpes.  This blog post was created to shed some light on how best to approach these distribution methods when tackling a common Wills MEE issue on the examination.     I. Intestate Prop erty Definition This includes assets held in the decedent’s name alone that do not pass by operation of law or by a will.  It should be noted that operation of law means that a non-probate assets that passes automatically because of the way the property title is held, REGARDLESS of the existence of a will. Keep in mind that the residuary (aka the rest left over) is calculated after claims, taxes, and other particular.   II. The Application of the Intest acy Rules Intestacy Rules Apply when 1) the decedent left NO WILL OR DID NOT properly execute a will, OR 2) the will DOES NOT provide for a proper distribu...
Read more

Adding Parties & Claims in Fed Civ Pro - Interpleader, Impleader, Joinder and Intervention

-
Understanding the Differences Between Impleader, Interpleader, Joinder and Intervention Federal Civil Procedure on the UBE contains a major section that pertains to adding parties and/or claims to an already existing suit.  There are four subsections relevant to this area of law known as impleader, interpleader, intervention and joinder.   It is imperative to know the distinctions between each of these subsections. At the outset, it would behoove you to create a chart or graph to capture the distinctions between these four legal mechanisms.  Understanding the nuanced differences between these mechanisms, memorizing necessary vs. permissive joinder, and understanding the difference between intervention as a right and permissive intervention is paramount for success on MBE questions pertaining to this area of the law.  Moreover, while not as common on an MEE essay as personal jurisdiction, subject matter jurisdiction or venue, we can easily see an issu...
Read more