Peter executes a deed to convey his property in Syracuse to his daughter Linda, but he asks Linda not to record the deed until after his death for tax planning purposes. Linda agrees and keeps the deed in her possession for two years without recording it. During this time, Peter sells the same property to an innocent purchaser, Carlos, who pays fair value and immediately records his deed. Under New York recording law, who has superior title?
Correct Answer
B) Carlos, because he was an innocent purchaser who recorded first
Under New York's recording statute, Carlos has superior title as a bona fide purchaser for value without notice who recorded first. New York follows a 'race-notice' recording system where a subsequent purchaser who takes without notice of the prior unrecorded deed and records first will prevail over the earlier grantee.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.
Actual notice means a person has direct, personal knowledge of a fact or interest in real property. This can come from being told, seeing something firsthand, or any form of direct awareness.
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Jennifer wants to transfer property in Albany to her two children, Amy and Brian, as joint tenants with right of survivorship. How should the deed be written in New York to create this ownership structure?
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