Devon purchases a vacant lot in Oakland County from Priya and records the deed. Three months later, Devon discovers that Priya had previously granted an easement across the same lot to a neighbor, but that easement was never recorded. Devon had no actual knowledge of the easement at the time of purchase. Under Michigan's recording act, which statement best describes Devon's position regarding the easement?
Correct Answer
B) Devon takes free of the easement because he is a bona fide purchaser who recorded first without notice
Under Michigan's race-notice statute (MCL 565.29), a subsequent purchaser who takes without notice of a prior unrecorded interest and records first takes free of that interest. Devon had no actual notice of the unrecorded easement, and the facts do not indicate any visible use that would create inquiry notice. Devon therefore qualifies as a bona fide purchaser and takes the property free of the unrecorded easement.
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Related Topics & Key Terms
Key Terms:
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A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
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