various motions filed earlier in this matter, Plaintiff, NancyBecker, is the Recorder of Deeds in and for Montgomery County,Pennsylvania. She filed this lawsuit on behalf of herself andall other Pennsylvania Recorders of Deeds alleging that bycreating and maintaining a private, members-only registry forrecording and tracking conveyances of interests in real property,the MERS Defendants have violated 21 P.S. §351 which requires
that such conveyances be publicly recorded in the county recorderof deeds offices. Specifically, Plaintiff is challenging thepractice by which MERS serves as the mortgagee of record in thepublic land records as the “nominee” for a lender who holds themortgage note and its successors and assigns and therebycircumvents the need to record the transfer of the note each timeit is sold.
§351. Failure to record conveyance
All deeds, conveyances, contracts, and other instruments ofwriting wherein it shall be the intention of the parties executingthe same to grant, bargain, sell, and convey any lands, tenements,or hereditaments situate in this Commonwealth, upon beingacknowledged by the parties executing the same or proved in themanner provided by the laws of this Commonwealth, shall berecorded in the office for the recording of deeds in the countywhere such lands, tenements, and hereditaments are situate. Everysuch deed, conveyance, contract, or other instrument of writingwhich shall not be acknowledged or proved and recorded, asaforesaid, shall be adjudged fraudulent and void as to anysubsequent bona fide purchaser or mortgagee or holder of anyjudgment, duly entered in the prothonotary’s office of the countyin which the lands, tenements, or hereditaments are situate,without actual or constructive notice unless such deed,conveyance, contract, or instrument of writing shall be recorded,as aforesaid, before the recording of the deed or conveyance orthe entry of the judgment under which such subsequent purchaser,mortgagee, or judgment creditor shall claim. Nothing contained inthis act shall be construed to repeal or modify any law providingfor the lien of purchase money mortgages.
Case 2:11-cv-06968-JCJ Document 118 Filed 07/01/14 Page 2 of 45