Tom sells his property to Lisa, who fails to record her deed. Lisa then sells to Mark, who records his deed immediately. Six months later, Tom fraudulently sells the same original property to Nancy, who has no knowledge of the previous sales and records her deed. Under Florida law, who has the best claim to the property?
Correct Answer
B) Mark, because he has a recorded deed in the chain from the original owner
Correct: Mark has the best claim because his deed, while from an unrecorded source, establishes a chain from the original owner through Lisa, and he recorded properly. Why not A: Lisa's failure to record weakens her position against subsequent purchasers. Why not C: Nancy cannot claim bona fide purchaser status because Mark's recorded deed would have given her constructive notice of the prior conveyance. Why not D: Consideration amount is not the determining factor under Florida's recording statutes.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Escrow is an arrangement in which a neutral third party holds documents, funds, or other items on behalf of the buyer and seller until all conditions of the transaction are met.
More Titles Deeds Recording Questions
A Tampa property is being purchased for $450,000. The buyer wants to know the cost of owner's title insurance. Using Florida's promulgated rate of $5.75 per $1,000 of coverage, what is the title insurance premium?
In a Tampa transaction, a buyer wants the Florida rule on general warranty. Which statement is correct?
Which answer most accurately states the Florida rule for general warranty?
Sarah is selling her Miami Beach condominium to Robert. At closing, she signs a deed that contains warranties that she owns the property and has the right to convey it, but provides no warranties against defects that existed before she acquired the property. What type of deed did Sarah most likely execute?
John and Mary own property in Jacksonville as tenants by the entirety. John wants to secretly transfer his interest to his business partner without Mary's knowledge or consent. He executes a quitclaim deed to his partner. What is the effect of this deed?
- → What is the main difference between a general warranty deed and a special warranty deed in Florida?
- → Under Florida law, what does 'constructive notice' mean in the context of recorded deeds?
- → Which answer most accurately states the Florida rule for chain of title?
- → In Florida, all of the following situations would typically be excluded from standard title insurance coverage EXCEPT:
- → Non-single-family real property in Miami-Dade County is conveyed for $220,000. What total deed documentary stamp tax and surtax are due?
- → Sarah is purchasing a home in Miami and her attorney discovers that the current owner's deed was never properly recorded. The seller has been living in the property for 15 years and paying taxes. What is the most likely outcome regarding the validity of the seller's ownership?
- → Which deed is most commonly used in Florida residential transactions?
- → Sarah discovers that her neighbor's fence encroaches 3 feet onto her property, which she purchased 2 years ago in Jacksonville. Her title insurance policy shows no survey exception. What is the most likely outcome regarding her title insurance claim?
- → A Florida owner uses a quitclaim deed to transfer whatever interest the owner has to a family member. Which statement about that instrument is incorrect?
- → Lisa conveys property to Tom via warranty deed on Monday but doesn't record it. On Wednesday, Lisa conveys the same property to Susan via warranty deed, and Susan immediately records her deed. Susan had no knowledge of the prior conveyance to Tom. Under Florida's recording statute, who has superior title?
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Previous Question
Under Florida's Marketable Record Title Act, all of the following interests may be extinguished if not properly preserved EXCEPT:
Next Question
A property outside Miami-Dade County sells for $750,000. The buyer assumes an existing mortgage of $320,000 and pays $430,000 in cash at closing. The buyer signs a new promissory note for the assumed amount. Using Florida's standard documentary stamp tax rates ($0.70 per $100 on the deed and $0.35 per $100 on the note), what is the total documentary stamp tax due on both the deed and the note?