Elena purchases a home in Ottawa County from Frank. Elena records her deed promptly. Two years later, Elena discovers that before Frank sold her the property, Frank had granted a right-of-way easement to a utility company, which the utility company never recorded. However, at the time Elena purchased the property, there were clearly visible utility poles and buried cable markers crossing the backyard. Elena claims she takes free of the easement because it was unrecorded. Which of the following is the most accurate legal conclusion under Michigan law?
Correct Answer
B) Elena takes subject to the easement because the visible utility poles and cable markers gave her inquiry notice of the easement prior to purchase
Under Michigan's race-notice statute (MCL 565.29), a subsequent purchaser prevails over a prior unrecorded interest only if they take WITHOUT notice. Notice includes not just actual and constructive (recorded) notice, but also inquiry notice — facts visible on the ground that would prompt a reasonable buyer to investigate. The presence of clearly visible utility poles and buried cable markers crossing the backyard constitutes inquiry notice. A reasonable buyer would have inquired about these physical indicators and discovered the easement. Because Elena had inquiry notice, she fails the 'without notice' requirement and takes subject to the easement despite recording her deed first.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
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