In 2020, Owner A conveyed a California property to Owner B via grant deed for valuable consideration, but Owner B never recorded the deed. In 2022, Owner A conveyed the same property to Owner C via grant deed for valuable consideration. Owner C had no actual or constructive knowledge of the prior conveyance to Owner B and recorded the deed immediately. Under California's recording statutes, who holds title to the property?
Correct Answer
B) Owner C, because California is a race-notice state and Owner C recorded first without notice of Owner B's prior interest
California is a race-notice recording state under Civil Code §1214. To prevail over a prior unrecorded interest, a subsequent purchaser must satisfy three elements: (1) acquire the interest for valuable consideration, (2) record before the prior interest is recorded, and (3) take without actual or constructive notice of the prior interest at the time of conveyance. Owner C satisfies all three elements — Owner C paid valuable consideration, had no knowledge of Owner B's unrecorded deed, and recorded first. Therefore, Owner C holds superior title.
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Jennifer is going through a divorce in California. Her ex-husband agrees to sign over his interest in the family home to her. Which type of deed is MOST appropriate for this transfer?
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