An Unrecorded Easement, a Seller Who Sat on the Buyer’s Board (Lauramar v. Mel Fisher)

The Facts

In April 1999, Key West Treasure granted Lauramar I Limited Partnership a perpetual easement to use part of its Key West property as a seating area. The easement was not recorded until roughly two and a half years after the Mel Fisher Maritime Heritage Society bought the property, according to the appellants’ counsel at argument.

Kim Fisher acted for the seller, Key West Treasure, and was also chairman of the Society. Before closing the Society was given a temporary seating license that was set to expire, not the perpetual easement, and the seller gave an affidavit that the property was free of easements. The Society later asked the restaurant when it would vacate and learned of the easement. The Monroe County circuit court quieted title in the Society, finding the Society had no knowledge of the easement when it bought and did not act with unclean hands.

Lauramar and Teapot, Inc. appealed. The points below are what the lawyers argued at oral argument, not findings by the appellate court.

• The easement holders argued that Fisher’s knowledge as an officer and chairman should be imputed to the Society, and that a claimed “Chinese wall” between his two roles could not be used to hurt third parties.
• They argued the Society would have asked questions about the restaurant’s tables if it had not been handed a soon-to-expire license, and that equitable doctrines such as unclean hands and constructive notice should apply.
• The Society argued that the trial court’s findings came with a presumption of correctness, that Fisher gained his knowledge acting only for the seller and took no part in the Society’s purchase, that the seller’s own closing attorney testified he was never told of the easement, and that the easement holders could have protected themselves by recording.
• The panel asked whether a chairman’s knowledge can be imputed to his organization, and observed that recording laws exist for exactly this kind of situation.

The Decision

The Third District affirmed in a short per curiam opinion on February 26, 2014. It cited section 695.01(1), Florida Statutes, and two cases: Mayfield v. First City Bank of Florida, 95 So. 3d 398 (Fla. 1st DCA 2012), which describes section 695.01 as a notice recording statute protecting later purchasers against earlier unrecorded instruments, and Sunshine State Insurance Co. v. Davide, 117 So. 3d 1142 (Fla. 3d DCA 2013), which holds that a trial judge’s findings after a bench trial are presumed correct.

The opinion does not discuss imputed knowledge or the “Chinese wall” argument. Read with its citations, it means the recording statute applied and the trial court’s finding that the Society bought without notice was supported. The mandate issued March 14, 2014.

The Law

Section 695.01(1) says a conveyance, transfer or mortgage of real property, or of any interest in it, is not good against creditors or subsequent purchasers for value and without notice unless it is recorded. An easement is an interest in land, so an unrecorded easement can be cut off by a buyer who pays value without notice.

Florida is a “notice” state. The question is not only who recorded first but whether the later buyer had notice, actual or constructive. Constructive notice can come from the public records or from facts that would lead a prudent buyer to inquire, such as someone in visible possession. That is why the easement holders pressed the inquiry-notice and imputed-knowledge points. The trial court resolved those against them on the facts, and the appellate court would not reweigh the evidence.

After a non-jury trial, the trial judge’s findings of fact are presumed correct and will be upheld if supported by competent, substantial evidence. Arguing on appeal that the judge should have weighed the equities differently rarely succeeds.

Lessons

• Record every easement, and record it right away. An unrecorded perpetual easement in Florida can be lost to a buyer who pays value without notice.
• Knowing the seller’s principal is not the same as the buyer having notice. Whether one officer’s knowledge is charged to an organization depends on the facts, and here the trial court found it was not.
• Buyers should still walk the property and ask about anyone using it. Visible use can create a duty to inquire, and a buyer should not rely only on a seller’s affidavit.
• A holder who loses an unrecorded easement may have a claim against the person who granted it and then sold without disclosing it. That is a different lawsuit from a claim against the buyer.
• Factual findings after a bench trial are hard to overturn. Build the record at trial.

Source: Lauramar I Limited Partnership v. Mel Fisher Maritime Heritage Society, Inc., No. 3D12-3038 (Fla. 3d DCA Feb. 26, 2014) (per curiam affirmance citing section 695.01(1)); ACIS docket.

Watch the Oral Argument

This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.

🔍 Is a Seller-Officer's Knowledge of an Unrecorded Easement Imputed? | Lauramar, 3D12-3038

Go Deeper

• Recorded 40 Minutes Too Late: A Dock Easement That Didn't Stick (Hagelin v. U.S. Funding)
• A Shared Well, a Dirt Driveway and an Easement Fight Between Odessa Neighbors (Marlette v. Carullo)
• Does MRTA Protect FDOT Land Held in Fee for a Drainage Canal? (DOT v. Mid-Peninsula Realty)

Frequently Asked Questions

Is an unrecorded easement valid in Florida?

It is valid between the people who made it. Under section 695.01, though, it is not good against a later buyer who pays value without notice. In Lauramar, the unrecorded seating easement did not survive the sale to the Society.

What is a bona fide purchaser without notice?

A buyer who pays value and has no actual or constructive notice of an earlier unrecorded interest. Florida’s recording statute protects that buyer. Notice can come from the public records, from actual knowledge, or from facts that would make a prudent buyer ask questions.

Is a company charged with what its officers know?

Often, but not always. It depends on whether the officer learned the information while acting for the company and within the scope of that role. In Lauramar, the trial court found the chairman acted only for the seller, and the appellate court affirmed.

What can I do if someone sold land without disclosing my unrecorded easement?

Talk to a lawyer promptly. A buyer protected by the recording statute may take free of the easement, but the person who granted it and then sold may face separate claims. Record any easement you hold now to avoid the problem.

Talk to a Florida real estate litigation lawyer

Weidner Law, P.A. handles Florida real estate disputes, title problems and appeals from St. Petersburg. If you need a real estate litigation lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.

Read the law yourself, free: every Florida statute and court rule is on floridarules.net.

This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.