Owner A received a deed to a California property in January 2024 and recorded it that same month. In March 2024 the same grantor deeded the property to Owner B, who paid fair market value, searched no records, and recorded immediately. Under California's race-notice recording statute, which owner prevails?
Correct Answer
A) Owner A, because A recorded first and that recording gave Owner B constructive notice of A's deed
California is a race-notice state. Civil Code 1214 makes an unrecorded conveyance void only against a later purchaser who pays value, takes without notice, and records first. Owner A recorded in January, and under Civil Code 1213 a properly recorded instrument is constructive notice to everyone who acquires an interest afterward. Owner B therefore took with constructive notice and did not record first, failing two of the three requirements, so Owner A's title prevails.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Constructive notice is the legal presumption that a person has knowledge of information that is available through public records or visible inspection of the property, regardless of whether they actually knew about it.
A deed is a written legal document that conveys (transfers) ownership of real property from one party to another. It must be delivered to and accepted by the grantee to be effective.
For a deed to be valid, it must contain several essential elements including a competent grantor, identifiable grantee, consideration, legal description, granting clause, signature of the grantor, and delivery and acceptance.
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