Kevin purchases a home in Montgomery County and receives a deed from the seller. Before Kevin records his deed, his friend Janet — who knows about Kevin's purchase — offers the seller a higher price and receives a second deed to the same property. Janet records her deed the same day she receives it. Kevin records his deed three days later. Under Maryland's recording statute, who has superior title?
Correct Answer
C) Kevin, because Janet had actual notice of Kevin's prior purchase and therefore cannot qualify as a bona fide purchaser
Under Maryland's race-notice recording statute (Md. Code Ann., Real Prop. §§ 3-101 et seq.), a subsequent purchaser must satisfy TWO conditions to prevail: (1) record first, AND (2) have no notice of the prior interest. Janet fails the second condition because she had actual knowledge of Kevin's prior purchase. A party with actual notice of a prior unrecorded interest cannot claim bona fide purchaser status, regardless of recording order. Therefore, Kevin's earlier purchase prevails.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
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