Arkansas uses which type of recording system to determine priority among competing claims to real property?

Correct Answer

C) Race-notice system — subsequent purchaser must record first AND have no prior notice of competing claims

Arkansas uses a race-notice recording system (Ark. Code Ann. § 14-15-404). To obtain priority over a prior unrecorded interest, a subsequent purchaser must satisfy two requirements: (1) record their instrument first, AND (2) have no actual or constructive notice of the competing claim at the time of purchase. This differs from a pure race system, where the first to record wins regardless of knowledge, and a pure notice system, where the most recent bona fide purchaser without notice prevails regardless of who records first.