Owner A sells the property to Buyer B, who pays the price but never records the deed. Owner A then sells the same property to Buyer C, who knows nothing of the earlier sale. In a race-notice jurisdiction, what must Buyer C also do to prevail over Buyer B?
Correct Answer
D) Record the deed before Buyer B records
A race-notice statute puts two requirements on the later purchaser: the purchase must be made without notice of the earlier conveyance, and the later purchaser must record first. Buyer C already satisfies the notice half of the test, so the only thing left is winning the race to record. Under a pure notice statute, lack of notice alone would be enough, which is the distinction between the two kinds of recording act.
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Key Terms:
Related Concepts
Escrow is an arrangement in which a neutral third party holds documents, funds, or other items on behalf of the buyer and seller until all conditions of the transaction are met.
A general warranty deed provides the greatest protection to the grantee by guaranteeing that the grantor holds clear title and has the right to sell the property. It includes covenants that protect against all defects in title, even those arising before the grantor owned the property.
Intestate succession is the legal process by which a deceased person's property is distributed according to state law when they die without a valid will. State statutes determine the order of inheritance.
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