Recording Priority

"On one hand, we could require Sabo to check beyond the chain of title to look for pretitle conveyances. While in this particular case the burden may not have been great, as a general rule, requiring title checks beyond the chain of title could add a significant burden as well as uncertainty to real estate purchases. To a certain extent, requiring title searches of records prior to the date of a grantor acquired title would thus defeat the purposes of the recording system. The records as to each grantor in the chain of title would theoretically have to be checked back to the later of the grantor’s date of birth or the date when records were first retained. On the other hand, we could require Horvath to rerecord his interest in the land once title passes, that is, after patent had issued to Lowery. As a general rule, rerecording an interest once title passes is less of a burden than requiring property purchasers to check indefinitely beyond the chain of title. It is unfortunate that in this case due to Lowery’s double conveyances, one or the other party to this suit must suffer an undeserved loss. We are cognizant that in this case, the equities are closely balanced between the parties to this appeal. Our decision, however, in addition to resolving the litigants’ dispute, must delineate the requirements of Alaska’s recording laws. Because we want to promote simplicity and certainty in title transactions, we choose to follow the majority rule and hold that the Horvaths’ deed, recorded outside the chain of title, does not give constructive notice to the Sabos and is not ‘duly recorded’ under the Alaskan Recording Act, AS 34.15.290. Since the Sabos’ interest is the first duly recorded interest and was recorded without actual or constructive knowledge of the prior deed, we hold that the Sabos’ interest must prevail. The trial court’s decision is accordingly. REVERSED."