- Actual Notice
- Inquiry Notice
- Record Notice
Inquiry notice: Whether he looks or not, B is on inquiry notice of whatever an inspection of the land would reveal.
- The buyer of real estate has a duty to inspect before transfer of title, to see whether anyone else is in possession. If another is in possession, B is charged with inquiry notice of the fact, regardless of whether buyer actually bothered to inspect or not.
- Thus, in the example, if A had taken possession, B would be on inquiry notice of that fact, thereby defeating B’s status as a BFP.
- If a recorded instrument makes reference to an unrecorded transaction, grantee is on inquiry notice of whatever a reasonable follow-up inspection would have revealed.
- In the example, what if A has not recorded, or has not recorded properly at the time B takes? Assume that B is a bona fide purchaser. Does B win?
- It depends on which recording statute the jurisdiction has enacted. In a notice state, B wins. In a race-notice state, to win, B must be a BFP and must also win the race to record.