Maria sells her home in Bergen County to David. David receives the deed but fails to record it. Two weeks later, Maria fraudulently sells the same property to Elena, who has no knowledge of the prior sale to David. Elena immediately records her deed. Under New Jersey's recording act, which party has superior title to the property?
Correct Answer
D) Elena, because she recorded her deed without notice of the prior conveyance to David
New Jersey follows a 'race-notice' recording statute. Under this framework, a subsequent bona fide purchaser who takes without notice of a prior unrecorded conveyance and records first will prevail over the prior unrecorded grantee. Elena had no actual or constructive notice of David's prior deed (it was unrecorded), paid value, and recorded first. Therefore, Elena has superior title.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
A freehold estate represents ownership of real property with an indefinite duration.
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