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Property OwnershipRecording_and_race_notice_statuteMEDIUM

Under Maryland's race-notice recording statute, which of the following parties would NOT be protected as a bona fide purchaser against a prior unrecorded interest?

Correct Answer

D) A buyer who received the property as a gift, had no knowledge of any prior unrecorded deed, and recorded first

A donee who receives property as a gift is not a bona fide purchaser for value because no valuable consideration was paid. Under the rule tested here, the donee cannot claim purchaser-for-value protection even if the deed was recorded first and there was no prior notice. Therefore, option D describes the party who would not be protected.

Answer Options
A
A buyer who paid fair market value, had no actual knowledge of any prior claims, and recorded the deed promptly
B
A buyer who paid fair market value, learned from a neighbor about a prior unrecorded sale only after closing, and recorded the deed promptly
C
A buyer who conducted a full title search, found no prior recorded interests, and recorded immediately at closing
D
A buyer who received the property as a gift, had no knowledge of any prior unrecorded deed, and recorded first

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Why the Other Options Are Wrong

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Background Knowledge for Property Ownership

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Related Topics & Key Terms

Key Terms:

race_notice_statutebona_fide_purchaservaluable_considerationdoneerecording_protection

Related Concepts

Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.

A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.

Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).

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