MBE Rules · Real Property
Shelter rule
The rule
A person who takes from a BFP is sheltered by the BFP's status — even if the taker had notice of the prior unrecorded interest. Exception: not available to the original grantor reacquiring property.
In plain English
If you buy property from someone who bought it in good faith, you get the same protection they had, even if you know about a previous claim on the property.
Worked example
The defendant buys a house from a BFP. The defendant knows about a prior unrecorded claim, but they are protected because the BFP was protected. The original owner can't use the shelter rule if they buy the property back.
Memory hook
Shelter Shield: BFP's umbrella. Even if you know, BFP's glow protects you unless you're the grantor reclaiming.
The trap
Students think: Notice always negates protection. Wrong, because BFP's status transfers. The actual test is the original grantor exception.
How examiners test it
The MBE loves: A taker with notice buys from a BFP. Trap: students forget the BFP's protection extends. Watch for original grantor exceptions.
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