Property OwnershipHARDFREE

Missouri follows which recording system?

2:55
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Audio Lesson

Duration: 2:55

Question & Answer

Review the question and all answer choices

A

Torrens system

CORRECT_ANSWER

B

Race-notice recording statute

Correct Answer
C

Pure race statute

Pure notice statute only requires acting without notice of prior claims, regardless of recording order, which is not Missouri's system.

D

Pure notice statute

Pure notice statute only requires acting without notice of prior claims, regardless of recording order, which is not Missouri's system.

Why is this correct?

Missouri follows a race-notice recording statute because it requires both that a purchaser act without notice of prior claims and that they record their interest before any subsequent claimants to establish priority over those who recorded later.

Deep Analysis

AI-powered in-depth explanation of this concept

Understanding recording systems is crucial for real estate professionals because they determine priority of property interests and protect bona fide purchasers. This question tests knowledge of Missouri's specific recording statute, which governs how property rights are established and prioritized. The correct answer is B, race-notice recording statute. To arrive at this answer, we must understand that Missouri's system requires both that a purchaser act in good faith (notice) and record their interest before others (race). This differs from pure systems that only require one of these elements. The question is challenging because it requires knowledge of Missouri-specific laws and the distinctions between different recording systems. Understanding this concept connects to broader real estate knowledge about title examination, priority of liens, and protecting clients' interests in transactions.

Knowledge Background

Essential context and foundational knowledge

Recording statutes exist to provide public notice of property interests and establish priority between competing claims. Most states follow one of three systems: race-notice, pure race, or pure notice. The race-notice system, followed by Missouri, protects buyers who both lack notice of prior claims and record their interest first. This system balances protection of innocent purchasers with the need for public recording. Missouri adopted its race-notice system to provide a fair balance between protecting prior owners' rights and allowing marketable title transactions.

Memory Technique
analogy

Think of a race-notice system like a marathon where runners must first check in at registration (notice) and then finish the race first (race) to win.

When faced with recording system questions, ask yourself: Does the state require both good faith AND being first to record? If yes, it's race-notice.

Exam Tip

For recording system questions, identify if the state requires both good faith AND first recording (race-notice), only first recording (pure race), or only good faith (pure notice).

Real World Application

How this concept applies in actual real estate practice

As a Missouri real estate agent, you're helping a client purchase a property. During title search, you discover an unrecorded deed from five years ago. Your buyer proceeds with the purchase, unaware of this prior claim. If another party later emerges with a claim to the property, Missouri's race-notice system protects your client if they recorded their deed first and acted in good faith without knowledge of the prior claim.

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