SUBSEQUENT PURCHASERS' RIGHTS. The recording laws being for the protec tion of subsequent purchasers, by providing a method by which any one may ascertain the true state of the title to any parcel of land, it is always held, that the holder of a prior unrecorded deed is defeated by the holder of a later deed procured in good faith and caused to be recorded before that of the other. But such subsequent purchaser in order to be protected must not only have no notice by virtue of the records, but must also be a bona Me purchaser for a valuable consideration, and without actual notice of the prior deed. The party relying on the older deed must show that the subgequent purchaser had actual notice of his claim.
A MORTGAGEE IS REGARDED AS A PURCHASER UNDER THE RECORDING LAWS. Within the meaning of all recording laws a mortgagee, or conditional owner, is regarded as a purchaser. At the common law a mortgagee was the owner of a conditional estate, that is, one liable to be defeated upon the happening. of the event, or pay ment of the sum designated prior to the day fixed. At the present time the title to the mortgaged prem ises does not pass to the mortg-agee by virtue of the mortgage deed, the mortgagee having simply a lien upon the land to satisfy or secure his loan. But, never theless, within the meaning- of the recording laws the mortgagee is regarded as a purchaser, and has the same rights as against subsequent purchaser as a grantee in a deed would have. In this regard some distinction is made between a mortgage given to se cure a pre-existing debt, and one in which the con sideration has been given at the time of the execution of the mortgage ; the former not being regarded as a mortgage for value within the recording acts, while the latter is.
Where a mortgage is given and part of the money which it secures has been advanced to the mortgagor on the presumption that the title is all right, and be fore the rest is paid, the mortgagee receives notice of a prior title—he is not justified in making any further payments to the mortgagor ; and if he does so his mort gage as to such further payments will be regarded as subsidiary to the title of which he has received no tice.