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In Maryland, Owner conveyed the same parcel of land first to Paul and then later to Elena. Paul received his deed first but did not record. Elena received her deed afterward, paid valuable consideration, and had no actual or constructive notice of the earlier conveyance to Paul. Elena then recorded her deed on June 15. Paul recorded his deed on June 20. Under Maryland's recording statute, who prevails?

Correct Answer

C) Elena prevails because Maryland is a race-notice state and she recorded first without notice and for valuable consideration

Maryland is a race-notice jurisdiction (Md. Code Ann., Real Prop. § 3-203). A subsequent bona fide purchaser for value who takes without notice of a prior unrecorded interest and records first prevails. Elena recorded on June 15 before Paul recorded on June 20 and had no notice, so she wins.

Answer Options
A
Paul prevails because his deed was delivered first in time
B
Paul prevails because Maryland follows a pure-race statute and timing of delivery controls
C
Elena prevails because Maryland is a race-notice state and she recorded first without notice and for valuable consideration
D
Elena prevails because Maryland is a pure-notice state, so recording order is irrelevant

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Related Topics & Key Terms

Key Terms:

race_notice_statuterecordingtitledeed_recordingpriority_of_interests

Related Concepts

Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.

A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.

Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.

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