Ch7. Recording Law in Depth — Filing, Objections, and Cancellation

Real Property Recording

Recording Principles:
Constructive notice: recording a deed puts the world on notice
Priority rules: first to record wins under race-notice or notice statutes
(varies by state — race, notice, or race-notice jurisdiction)

Who May Record:
Any party to the instrument or their authorized representative
Paralegal/document preparer may submit on behalf of client

Filing Method:
In-person at county recorder's office or e-recording (PRIA standards)
Original instrument + required fees

Recording Office:
County Recorder / Register of Deeds in the county where property sits
PACER and state court e-filing for court-related documents

Title Review and Objections

Constructive Notice Doctrine:
Recorder only checks form, not underlying validity
No warranty of title by the recorder's office
Title insurance fills the gap (ALTA/CLTA policies)

Title Objection Process:
Buyer or lender raises objection to title commitment
Seller must cure within contract deadline
Unresolved objections → buyer may terminate or waive

Recording Rejection:
Recorder rejects document for defects (missing notarization, wrong county, etc.)
Submitter corrects and resubmits

Cancellation / Release of Record:
Incorrect or satisfied instrument may be released or expunged by court order
Trustee's deed or deed of reconveyance eliminates paid-off deed of trust

Key Recorded Instrument Types

Grant Deed / Warranty Deed:
Transfers title with implied/express covenants of title
Requires grantor signature + notarization + recording

Quitclaim Deed:
Transfers only grantor's existing interest; no title warranties
Common for correcting title defects or transferring between family members

Deed of Trust / Mortgage:
Borrower + lender (+ trustee under deed of trust) jointly execute
Loan amount / maximum credit limit is recorded

Lis Pendens:
Notice that litigation affecting title is pending
Protects plaintiff's interest during lawsuit
Expunged when suit resolves

Release / Deed of Reconveyance:
Recorded when underlying obligation is paid off
Lender or trustee executes; clears lien from title

Business Entity Filings (Secretary of State)

Entity Formation:
Draft articles / certificate → pay filing fee → Secretary of State approves
Filing completion = entity legally exists

Key Recorded Items:
Entity name, registered agent, principal office address
Officers / managers / members (varies by entity type)
Authorized shares (corporations) or membership interests

Amendment Filings:
Within specified period after change (commonly within 30–90 days)
Change of registered agent, officer changes, name changes

Dissolution Filings:
Board / member vote → articles of dissolution filed
Wind up affairs, pay creditors → certificate of termination issued

Key Concept Cards

Recording = Constructive Notice to All ★★★★★ : Recording an instrument puts every subsequent buyer and lender on notice. Memory hook: recording = notice

Entity Existence = Articles Filed + Approved ★★★★★ : An LLC or corporation legally exists only after the Secretary of State approves its filing. Memory hook: entity = filing approved

Recorder = Form Check Only, No Title Guarantee ★★★★☆ : The recorder does not verify the validity of the underlying transaction; title insurance is needed. Memory hook: recorder = form only

Practice Quiz

Q. What is the effect of a lis pendens, and when is it expunged?

Lis pendens: gives constructive notice that a lawsuit clouds title; subsequent purchasers take subject to the outcome. After the filing, a deed is recorded → buyer takes subject to the litigation result. When the suit is dismissed or final judgment entered, the lis pendens is expunged or the court orders it released. A purchaser who buys after lis pendens is recorded takes with knowledge and cannot claim bona fide purchaser status.

Q. How does a document preparer’s role differ from an attorney’s in recording work?

Document preparer: specializes in preparing and submitting recording instruments — deeds, deeds of trust, UCC filings, and corporate filings. Cannot give legal advice or represent clients in litigation. Attorney: may handle all legal matters including recording. Paralegal / document prep advantage: lower cost and turnaround for routine recording tasks. Most county recorder filings are handled without attorney involvement in residential transactions.