In 2022, Alice conveys a parcel of land in Passaic County, New Jersey, to Bob using a bargain and sale deed with covenants against grantor's acts. Bob never records the deed. In 2024, Alice (fraudulently acting as if she still owns the property) conveys the same parcel to Carol using a general warranty deed. Carol pays fair market value and has no actual knowledge of Bob's prior unrecorded deed. Carol immediately records her deed. Under New Jersey's recording act, who holds superior title to the property?
Correct Answer
D) Carol, because she is a bona fide purchaser for value without notice who recorded her deed first
New Jersey follows a 'race-notice' recording act (N.J.S.A. 46:22-1). Under this statute, a subsequent purchaser prevails over a prior unrecorded conveyance if the subsequent purchaser (1) pays valuable consideration, (2) takes without actual, constructive, or inquiry notice of the prior conveyance, and (3) records first. Carol satisfies all three requirements: she paid fair market value, had no actual knowledge of Bob's unrecorded deed, and recorded her deed before Bob recorded (or ever recorded). Therefore, Carol holds superior title to the property.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.
Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).
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