On Day 1 an owner conveys a parcel to Alice, who pays full value but never records her deed. On Day 10 the same owner conveys the same parcel to Bob. Bob also pays full value, knows nothing of Alice's deed, and records that same day. Alice records her older deed on Day 15. The state has a race-notice recording act. Who owns the parcel, and why?
Correct Answer
A) Bob, because he paid value without notice of Alice's deed and recorded before she did
A race-notice act protects a later purchaser only when two things are true: the purchaser took without actual or constructive notice of the earlier conveyance, and the purchaser recorded before the earlier claimant did. Bob satisfies both, so his deed prevails and Alice's Day 15 recording is too late. If either element had failed, if Bob had known of Alice's deed, or if Alice had recorded first, Alice would keep the parcel.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.
Actual notice means a person has direct, personal knowledge of a fact or interest in real property. This can come from being told, seeing something firsthand, or any form of direct awareness.
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