In a race-notice jurisdiction, Buyer B purchases property from Owner A but does not record. Buyer C later purchases the same property from Owner A. Buyer C knows about the prior sale to Buyer B. Even if Buyer C records first, who prevails?
Correct Answer
C) Buyer B, because C had actual notice of B's purchase
In a race-notice jurisdiction, a later purchaser must both lack notice AND record first. Since Buyer C knew about B's purchase (actual notice), C cannot qualify as a bona fide purchaser without notice, so B prevails.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A deed is a written legal document that conveys (transfers) ownership of real property from one party to another. It must be delivered to and accepted by the grantee to be effective.
For a deed to be valid, it must contain several essential elements including a competent grantor, identifiable grantee, consideration, legal description, granting clause, signature of the grantor, and delivery and acceptance.
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.
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- → A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
- → A buyer drives past the property and sees someone other than the seller living there and maintaining the yard. This observation should put the buyer on what type of notice?
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- → Along with the signed offer, Quinn Brooks delivers a check to demonstrate serious intent to complete the transaction if the offer is accepted. What is this deposit called?
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