Property Course – Found Property Concepts
Disputes involving a more remote grantee. If one of the parties to the dispute is a more remote grantee in a chain of title originating from a common grantor, determine first if the more remote grantee independently qualifies as a BFP protected by the jurisdiction’s recording act under Part B above. If the more remote grantee does not independently qualify as a BFP, proceed.
1.
Who did the more remote grantee get the title from?
a.
Title from a BFP: did the more remote grantee get title from a BFP who has superior title by virtue of the jurisdiction’s recording act? If yes, the shelter rule protects the more remote grantee’s title against the chain of a prior grantee in another chain of title stemming from a common grantor.
i.
Shelter Rule Protects Donees.
The shelter rule protects a more remote grantee who is a donee.
ii.
Protects even a more remote grantee with notice of another’s claim.
The more remote grantee’s title is protected under the shelter rule even if the more remote grantee has notice of a prior grantee’s competing claim.
iii.
Shelter rule extends down the chain of title from a BFP.
b.
Title acquired from the person with superior title under FTFR. If the more remote grantee acquired title from a grantee who is FTFR and who can defeat the claims of a later purchaser from a common grantor, then the more remote grantee acquired superior title directly from the grantee who has superior title and does not rely on the shelter rule.
