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Property OwnershipRecording_and_torrens_systemMEDIUM

Sandra owns abstract (non-Torrens) property in Ramsey County. On March 1, she sells the property to Buyer A and delivers a deed, but Buyer A does not record the deed. On April 15, Sandra fraudulently sells the same property to Buyer B, who pays full market value, has no knowledge of the prior sale to Buyer A, and records the deed immediately. Under Minnesota's recording act, who holds superior title?

Correct Answer

B) Buyer B, because Minnesota follows a race-notice recording act, and Buyer B recorded first without notice of the prior conveyance

Minnesota follows a race-notice recording act (Minn. Stat. § 507.0401). Under a race-notice statute, a subsequent purchaser prevails over a prior unrecorded interest if: (1) the subsequent purchaser pays valuable consideration, (2) takes without actual or constructive notice of the prior conveyance, and (3) records first. Buyer B meets all three requirements — paid full market value, had no knowledge of Buyer A's deed, and recorded first — so Buyer B holds superior title.

Answer Options
A
Buyer A, because the first deed delivered in time always prevails under Minnesota's recording act
B
Buyer B, because Minnesota follows a race-notice recording act, and Buyer B recorded first without notice of the prior conveyance
C
Sandra, because she is the original grantor and the second conveyance was fraudulent
D
Buyer A, because Buyer B had constructive notice of the prior sale through Sandra's public records

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Related Topics & Key Terms

Key Terms:

recording_actrace_noticeprioritybona_fide_purchaserminn_stat_507abstract_system

Related Concepts

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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