## Facts

- Competing parties claimed title to two tracts of land in Burlington County, New Jersey, each tracing to a common grantor, Asbury Company.
- On February 12, 1913, Asbury conveyed by quitclaim deed to Appleby Estates a tract that included the disputed land; the deed described the property by reference to earlier deeds rather than metes and bounds.
- The Appleby deed was recorded on February 18, 1913.
- On February 15, 1913, Asbury executed a warranty deed to Robert E. Taylor for the disputed land described by metes and bounds.
- The Taylor deed was not recorded until April 25, 1913.
- Subsequent conveyances led plaintiffs (Palamarg Realty Company and World Wide Searcher, Inc.) to claim through the Appleby/Asbury line, while defendants claimed through the Taylor line.
- Plaintiffs sued to quiet title; defendants answered and counterclaimed to quiet title in themselves.
- The trial court denied plaintiffs’ summary-judgment motion and granted defendants’ summary-judgment motions.
- The Appellate Division reversed and entered judgment for plaintiffs, quieting title in their favor.

## Issues

1. Under New Jersey’s recording system, does an earlier-recorded deed in one chain of title take priority over a later-recorded deed from the same grantor that creates an inconsistent, parallel chain?
2. What is the scope of a purchaser’s duty to search title for purposes of constructive notice: must a purchaser search all conveyances by every prior grantor for all time, or only those within a reasonable chain of title?

## Decision

- The Supreme Court of New Jersey affirmed the Appellate Division.
- The Court held that plaintiffs’ title was superior to defendants’ title.
- The Court ruled that a purchaser is not charged with constructive notice of instruments that are outside a reasonable chain of title, even if recorded in the public records.
- The Court concluded the earlier-recorded Appleby deed provided record notice within plaintiffs’ chain and that plaintiffs were not required to discover the later-recorded Taylor deed by an unlimited grantor-wide search.
- Judgment quieting title was entered for plaintiffs.

## Legal Principles

- Priority under the recording system is assessed through the lens of what a reasonable title search within the chain of title would disclose.
- Constructive notice does not extend to every recorded instrument; it is limited to instruments that a reasonably diligent searcher would find in the purchaser’s chain of title.
- A rule requiring examination of all conveyances by every grantor for all time imposes an unreasonable burden and is inconsistent with the practical operation of a recording system.
- A recorded deed with a description sufficient to identify the conveyed land (including by reference to earlier deeds) can establish record notice and support priority over a later-recorded competing deed.

## Conclusion

The court quieted title in favor of the earlier-recorded chain and limited constructive notice to documents discoverable through a reasonable chain-of-title search, rejecting an unlimited duty to examine all conveyances made by each prior grantor.


Palamarg Realty Co. v. Rehac, 80 N.J. 446 (1979)