§ 266. Rights of purchaser or incumbrancer for valuable consideration
protected. This article does not in any manner affect or impair the
title of a purchaser or incumbrancer for a valuable consideration,
unless it appears that such purchaser or incumbrancer had previous
notice, whether actual or constructive, of the fraudulent intent of his
immediate grantor, or of the fraud rendering void the title of such
grantor. There shall be a rebuttable presumption that a purchaser or
incumbrancer had notice of fraud or fraudulent intent in the case of a
transfer of mortgaged real property, between a purchaser and seller who
are not associated parties, that is not accompanied by the recording
with the clerk of the county or with the commissioner of deeds in which
the property is located, of a statement, executed by the mortgagee, and
duly acknowledged, stating, substantially, that (a) a party is assuming
the seller's indebtedness secured by the mortgage; or (b) that the
indebtedness secured by the mortgage has been satisfied.

For the purposes of this section, "associated parties" means spouses,
ex-spouses, parents and children, siblings, a homeowner and that
homeowner's family trust, or a homeowner and that homeowner's
wholly-owned limited liability company.