Maria sells her Denver home to Carlos on March 1. Carlos receives the deed but does not record it. On March 15, Maria fraudulently conveys the same property to David, who pays fair market value and has no knowledge of the prior sale to Carlos. David records his deed immediately. Under Colorado recording law, who holds superior title?
Correct Answer
B) David, because he recorded first and had no notice of the prior conveyance
Colorado follows a race-notice recording statute under C.R.S. § 38-35-109. Under this system, a subsequent purchaser who (1) pays valuable consideration, (2) has no actual or constructive notice of a prior conveyance, and (3) records first will prevail over an earlier unrecorded deed. David satisfies all three requirements: he paid fair market value, had no knowledge of Carlos's prior purchase, and recorded first. Therefore David holds superior title.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
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