EstatePass
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
Study Infographics
Study card infographic for: Blake sold his home to Frank but remained in possession and negotiated a two-yea
Download

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Related Topics & Key Terms

Related Topics:

recording-acts-prioritylandlord-tenant-rightssale-leaseback-transactions

Key Terms:

race-notice stateconstructive noticeCivil Code Section 1214recording statutesleaseback possession
Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing