On Day 1, Owner grants a mortgage to Lender A, who does not record. On Day 10, Owner sells the property to Buyer, who conducts a full title search, finds no recorded encumbrances, pays fair market value, and records the deed. On Day 15, Lender A records the mortgage. Buyer later discovers the mortgage. Under Massachusetts recording law, which of the following correctly describes Buyer's position?
Correct Answer
B) Buyer takes the property free of Lender A's mortgage because Buyer recorded first without notice of the prior mortgage
Under Massachusetts's race-notice statute (MGL Chapter 183), the recording act protects not only subsequent purchasers but also subsequent purchasers against prior unrecorded encumbrances such as mortgages. Buyer conducted a title search (establishing no constructive notice), paid fair market value (providing value), and recorded the deed on Day 10 — before Lender A recorded the mortgage on Day 15. Buyer satisfies both race-notice conditions: recording first and taking without notice. Buyer therefore takes the property free and clear of Lender A's prior unrecorded mortgage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).
The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
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