[§501-264]  Chain of title of deregistered
land.  (a)  A certificate of title recorded pursuant to section 501-261
shall constitute a new chain of record title in the registered owner of any
estate or interest as shown on the certificate of title so recorded, subject
only to the following:



(1)  The estates, mortgages, liens, charges,
instruments, documents, and papers noted on the certificate of title so
recorded;



(2)  Liens, claims, or rights arising or existing
under the laws or Constitution of the United States, which the statutes of this
State cannot require to appear of record in the registry; provided that notices
of liens for internal revenue taxes payable to the United States, and
certificates affecting the liens, shall be deemed to fall within this paragraph
only if the same are recorded in the bureau of conveyances as provided by
chapter 505;



(3)  Unpaid real property taxes assessed against the
land and improvements covered by the certificate of title as recorded, with
interest, penalties, and other additions to the tax, which, unless a notice is
filed and registered as provided by county real property tax ordinance, shall
be for the period of three years from and after the date on which the lien
attached, and if proceedings for the enforcement or foreclosure of the tax lien
are brought within the period, until the termination of the proceedings or the
completion of the tax sale;



(4)  State tax liens, if the same are recorded in the
bureau of conveyances as provided by section 231-33;



(5)  Any public highway, or any private way laid out
under the provisions of law, when the certificate of title does not state that
the boundary of the way has been determined;



(6)  Any lease, coupled with occupancy, for a term not
exceeding one year; provided that the priority of the unrecorded lease shall
attach only at the date of the commencement of the unrecorded lease and expire
one year from the date or sooner if so expressed;



(7)  Any liability to assessments for betterments, or
statutory liability that may attach to land as a lien prior to or independent
of, the recording or registering of any paper of the possibility of a lien for
labor or material furnished in the improvement of the land; provided that the
priority of any liability and the lien therefor (other than for labor and
material furnished in the improvement of the land, which shall be governed by
section 507-43) shall cease and terminate three years after the liability first
accrues unless notice thereof, signed by the officer charged with collection of
the assessments or liability, setting forth the amount claimed, the date of
accrual, and the land affected, is recorded in the bureau of conveyances
pursuant to chapter 502 within the three-year period; and provided further that
if there are easements or other rights, appurtenant to a parcel of deregistered
land, which for any reason have failed to be deregistered, the easements or
rights shall remain so appurtenant notwithstanding the failure, and shall be
held to pass with the deregistered land until cut off or extinguished in any
lawful manner;



(8)  The possibility of reversal or vacation of the
decree of registration upon appeal;



(9)  Any encumbrance not required to be registered as
provided in sections 501-241 to 501-248 and relating to a leasehold time share
interest or leasehold interest in deregistered land; and



(10)  Child support liens that are created pursuant to
order or judgment filed through judicial or administrative proceeding in this
State or in any other state, the recording of which shall be as provided by
chapter 576D.



(b)  For purposes of this section, an
encumbrance shall be deemed sufficiently noted on a certificate of title if the
notation:



(1)  References a document by name or number that
contains an encumbrance; and



(2)  Indicates that the referenced document contains
an encumbrance to which the deregistered land is subject.



(c)  All instruments, documents, and papers
noted on a certificate of title recorded pursuant to section 501-261 shall have
the same force and effect as if they had been recorded in the bureau of
conveyances pursuant to chapter 502 as of the date, hour, and minute of
reception noted on the certificate of title pursuant to section 501-107;
provided that:



(1)  No instrument, document, or paper shall have any
greater or other effect after the certificate of title is recorded pursuant to
section 501-261, as constructive notice or otherwise, than it had or acquired
at the time it was registered pursuant to this chapter or made; and



(2)  Nothing in this part shall be construed as giving
any greater or other effect, as constructive notice or otherwise, to any
instrument, document, or paper recorded in the bureau of conveyances pursuant
to chapter 502 prior to the recordation of the certificate of title pursuant to
section 501-261 as to any land, than was provided by the laws of this State
(including this chapter and other laws regarding registered land) in effect at
the time the instrument, document, or paper was recorded.



(d)  If a certificate of title recorded
pursuant to section 501-261 relates to more than one fee time share interest or
more than one interest in other deregistered land, then subsection (a) shall
apply to each interest separately and only those items described in subsection
(a) that encumbered a particular interest prior to recordation of the
certificate of title will continue to encumber that interest after the
recordation. [L 2009, c 120, pt of §2]