Birdsell v. Bella Funding, L.L.C. Ex Rel. Visani (In Re Arvizu Construction, Inc.)

AMENDED OPINION

RANDOLPH J. HAINES, Bankruptcy Judge.

The issue here is whether a trustee may avoid a deed of trust that was properly recorded but not properly indexed due to a misspelling of the Debtor’s name, when a search by a title company would have disclosed the deed of trust due to its correct legal description. For two independent reasons, the Court concludes that the recording did provide constructive notice to all potential bona fide purchasers, and therefore judgment must be granted to the Defendants.

BACKGROUND FACTS

Public records reflect that Mr. Luis Ar-vizu acquired property…