When may a deed in a chain refer to an instrument outside the chain?

Prepare for the Real Property Multistate Bar Exam with detailed quizzes, flashcards, and multiple choice questions. Each question includes hints and explanations to help you understand key concepts and excel in your test!

A deed in a chain may refer to an instrument outside the chain when it imparts constructive notice. Constructive notice is a legal concept that provides that a person is considered to have knowledge of a document or fact even if they have not actually seen it, due to its public recording and availability.

In property law, if a deed refers to an external instrument that has been recorded, it can serve as constructive notice to subsequent purchasers or parties that there are additional rights or interests associated with the property that may not be explicitly detailed within the chain of deeds. This is significant because it can affect the rights of parties dealing with the property.

In contrast, while an equity deed may be relevant, it does not inherently provide the same basis for referring to an outside instrument. Similarly, simply reminding of a previous conveyance without it being publicly recorded does not satisfy the requirement for constructive notice. Finally, a lease, while it may establish rights related to property usage, is not a sufficient reason to refer to an outside instrument in this context unless it is recorded and provides constructive notice to third parties.

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