Your Essay Answer

Bob did not take the land subject to the gas line easement. At
issue is whether B is protected by recording statute. At common
law, priority was given to the conveyance that was first in time.
But this state has a notice statute under which a subsequent
bona fide purchaser (BFP) takes priority free of prior interests.
The subsequent purchaser must pay valuable consideration and
show they did not actually know of any prior conveyances.
Moreover, under the shelter rule, a person who receives property
from a BFP receives the rights of that BFP (even if they have
knowledge of an unrecorded deed). Here, O first granted an
easement to a gas company, which was never recorded.
Subsequently, O conveyed the land to A, who promptly recorded
the deed. A was a BFP as A paid valuable consideration for the
land and took with no actual notice, record notice (the deed made
no mention of the E), nor inquiry notice as a reasonable
inspection would not reveal the easement as it was underground
and the surface of the land was restored to its pre-installation
condition. A later conveyed the land to B, which was recorded.
While B, on his own, does not qualify as a BFP despite paying
valuable consideration--since he had knowledge of the
underground gas line since he had helped dig the trenches on the
land--he still is protected under A's BFP's status under the shelter
rule. As A took without notice, B will likewise be deemed to have
taken without notice. Therefore, the recording statute prevails
and B will not take the land subject to the gas line easement.

Self-Scoring Guide
(check each statement that corresponds to a statement
in your answer)
The issue is whether Bob could take free of the gasline easement despite having notice of it (alternative: an
alternative issue is the application of the shelter rule)
Under the common law rule, priority is given to the
conveyance that was first in time
The recording statute here provides that a
conveyance of real property is not valid against any
subsequent purchaser who, without notice, purchases
said real property in good faith and for valuable
consideration

 A statute under which a bona fide purchaser (BFP)

takes free of prior interests regardless of who recorded
first is a notice statute
A BFP is a purchaser for value who takes without
actual, record, or inquiry notice of the prior grant
Under the shelter rule, a person who takes from a BFP
will prevail against any interest that the BFP would have
prevailed against
The shelter rule applies even if the transferee had
actual knowledge of the prior interest
Owen conveyed the gas-line easement first
Bob took the land subject to the easement unless he
is protected by the recording statute
Bob purchased the land from Abe
Bob was not a BFP because he had actual knowledge
of the gas-line easement
Abe paid full value for the land
Abe lacked actual knowledge of the gas-line
easement
Abe lacked record notice because the easement was
not recorded
Abe lacked inquiry notice because, being
underground, the gas lines were not visible
Abe was a BFP who took the land free of the gas-line
easement
Because Bob purchased the land from Abe, Bob also
took the land free of that easement under the shelter
rule
Therefore, Bob took the land free of the gas-line
easement