Robert grants an easement to his neighbor Susan, allowing Susan to cross Robert's Passaic County property. The easement agreement is signed and notarized but Susan never records it. Robert later sells his property to Thomas, who conducts a proper title search, finds no recorded easement, and purchases the property. Thomas then blocks Susan's access. Under New Jersey recording law, which outcome is most likely?
Correct Answer
B) Thomas takes free of Susan's easement because he is a bona fide purchaser without notice of the unrecorded easement
Under New Jersey's race-notice recording statute, a subsequent bona fide purchaser who takes without actual or constructive notice of a prior unrecorded interest and records first is protected against that unrecorded interest. Thomas conducted a proper title search, found no recorded easement, had no actual notice, and purchased the property. He takes free of Susan's unrecorded easement. Susan's failure to record means her easement is not enforceable against a subsequent bona fide purchaser.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
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.
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