Greenacre is a tract of real property in State X. On Day 1, O executes and delivers a general warranty deed that purports to convey Greenacre to A in fee simple for $100,000. However, O does not own Greenacre at this time. Neither O nor A records this deed.
On Day 30, A executes a general warranty deed that purports to convey Greenacre to B in fee simple for $110,000. At the time, neither A nor B records the deed. B takes immediate possession of Greenacre.
On Day 60, O acquires Greenacre from its true owner in fee simple. O immediately records this deed.
On Day 90, O executes a general warranty deed that purports to convey Greenacre to C in fee simple for $100,000. C has no actual or constructive notice of the prior deeds from O to A or A to B. On the same day, C records the deed from O to C.
On Day 100, B records the deed from A to B.
Under the law of State X, a general warranty deed includes the covenants of seisin, quiet enjoyment, and warranty. Under the State X recording act, a bona fide purchaser for value is protected against claims by other persons who have not previously recorded.
On Day 120, C sues B, seeking to quiet title to Greenacre. B counterclaims against C to quiet title in B’s favor. B immediately notifies both O and A of the suit and demands that they defend B against C’s claim. Both O and A refuse. C immediately notifies O of the suit, and demands that O defend C against B’s counterclaim. O refuses.
The case of C versus B goes to trial, at which the court finds that C holds title to Greenacre. Assume that the statute of limitations has not run as to any potential claims by the parties.
- Did the court correctly find that C holds title to Greenacre? Explain.
- Can B recover against A for breach of any of the applicable covenants of title? Explain, discussing any appropriate remedy.
- Can B recover against O for breach of any of the applicable covenants of title? Explain, discussing any appropriate remedy.
- Can C recover against O for breach of the covenants of quiet enjoyment or warranty? Explain, discussing any appropriate remedy.