Practice Of Real EstateProperty ManagementHARD
Blake sold his home to Frank but remained in possession and negotiated a two-year leaseback. Frank did not record the deed. During this two-year period, Blake sold the home to Sam who then recorded the deed. Who owns the home?
Correct Answer
B) Frank, because he received the first deed.
In a race-notice state, an unrecorded deed is still valid between the original parties. Frank received the first deed and has priority over Sam, even though Sam recorded. Blake committed fraud by selling twice.
Answer Options
A
Sam, because he recorded his deed.B
Frank, because he received the first deed.C
Blake, because both sales were fraudulent.D
Frank, because he received the first deed.Audio Lesson3 min
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Related Topics & Key Terms
Related Topics:
recording-acts-prioritylandlord-tenant-rightssale-leaseback-transactions
Key Terms:
race-notice stateconstructive noticeCivil Code Section 1214recording statutesleaseback possession
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