Creditors' Rights and Security Transactions -- 1956 Tennessee Survey

Possession of Land Under Contract of Sale as Notice to Subsequent Purchaser of the Land: There is a security transaction facet in the ejectment case of Harris v. Buchignani,' decided by the Tennessee Supreme Court, which should be given some attention. In that case, by clear implication, the court put forth some disturbing doctrine relative to priorities under the Tennessee recording statute. Without specifically mentioning it, the court appears to have disavowed and repudiated the doctrine that possession of property inconsistent with the record title holder is notice to a subsequent deed of trust lender so as to prevent the lender from qualifying as a bona fide purchaser from the makers of the deed of trust. In Tennessee a deed of trust lender is a purchaser and not a creditor, within the purview of the recording statutes of Tennessee.