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Sandra sells her Grand Rapids home to Marcus on June 1. Marcus receives the deed but does not record it. On June 10, Sandra fraudulently sells the same property to Lisa, who has no knowledge of the prior sale and records her deed immediately. Under Michigan's recording act, who has superior title to the property?

Correct Answer

D) Lisa, because she recorded her deed first and had no knowledge of the prior conveyance

Michigan follows a 'race-notice' recording statute under MCL 565.29. To prevail over a prior unrecorded interest, a subsequent purchaser must (1) record first AND (2) take without notice of the prior conveyance. Lisa satisfies both requirements: she had no knowledge of Marcus's prior purchase and she recorded first. Therefore, Lisa holds superior title.

Answer Options
A
Marcus and Lisa share equal title because both received valid deeds from Sandra
B
Marcus, because he was the first purchaser and received the deed on June 1
C
Sandra, because she is the original owner and the second sale voided the first
D
Lisa, because she recorded her deed first and had no knowledge of the prior conveyance

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Background Knowledge for Property Ownership

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Related Topics & Key Terms

Key Terms:

recordingrace_noticebona_fide_purchaserchain_of_titleconstructive_notice

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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