Lowery sold land to Horvath (D) before the government issued him title in the land. D recorded the deed. After receiving title from the government, Lowery sold the land to Sabo (P). D recorded its deed on January 5, 1970, and P recorded its deed on December 13, 1973. P heard of D's claim and attempted to quiet title. D’s claim was recorded outside the chain of title. The court held that P had constructive notice of D's title, and ruled for D. P appealed.

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