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Under Michigan's recording act (MCL 565.29), a subsequent purchaser who records a deed first will generally prevail over a prior purchaser who has not yet recorded, provided the subsequent purchaser had no actual or constructive notice of the prior conveyance. Michigan's recording act is BEST classified as which type of recording statute?

Correct Answer

C) Race-notice statute — a subsequent purchaser must both record first AND have no notice of the prior conveyance to prevail

Michigan's recording act (MCL 565.29) is a race-notice statute. To prevail over a prior unrecorded conveyance, a subsequent purchaser must satisfy TWO conditions: (1) they must record their deed before the prior purchaser records, AND (2) they must have had no actual or constructive notice of the prior conveyance at the time they purchased. If either condition is not met — if the subsequent purchaser had notice of the prior deed, or if the prior purchaser records first — the subsequent purchaser does not prevail. This dual requirement is the defining characteristic of a race-notice statute.

Answer Options
A
Pure notice statute — a subsequent purchaser without notice prevails over a prior unrecorded deed regardless of who records first
B
Pure race statute — the first party to record prevails regardless of notice
C
Race-notice statute — a subsequent purchaser must both record first AND have no notice of the prior conveyance to prevail
D
Shelter rule statute — a subsequent purchaser is always protected if they received the deed from a bona fide purchaser

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Related Topics & Key Terms

Key Terms:

deed_typesrecording_actrace_notice_statuteMCL_565_29title_priority
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