Carlos purchases a commercial property in Essex County and records his deed with the county clerk. Six months later, he discovers that a judgment lien was entered against the previous owner before Carlos purchased the property, but the lien was recorded in Hudson County rather than Essex County. Under New Jersey recording law, which statement best describes the effect of the misrecorded lien on Carlos?
Correct Answer
B) Carlos takes the property free of the lien because recording in the wrong county does not provide constructive notice to purchasers searching in the correct county
Under New Jersey's recording system, instruments must be recorded in the county where the property is located to provide constructive notice to subsequent purchasers and encumbrancers. A lien recorded in the wrong county (Hudson County instead of Essex County, where the property is located) is not properly recorded and does not impart constructive notice to a title searcher examining Essex County records. Carlos, as a bona fide purchaser who searched the correct county, takes free of the improperly recorded lien.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
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