Robert grants a mortgage to First Bank on January 5th, which the bank records on January 20th. On January 12th, Robert sells the property to Susan, who records her deed on January 15th. Susan had no actual knowledge of the mortgage. Under New York recording law, what is the priority between the mortgage and Susan's ownership?
Correct Answer
C) Susan's deed has priority because she recorded before the mortgage was recorded
Under New York's race-notice recording statute, Susan's deed has priority. She was a bona fide purchaser who recorded her deed on January 15th before the mortgage was recorded on January 20th, and she had no actual knowledge of the unrecorded mortgage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Adverse possession is a legal doctrine that allows a person to claim ownership of land by occupying it continuously for a statutory period under specific conditions, without the true owner's permission.
A bargain and sale deed implies that the grantor holds title and possession of the property but does not include warranties against encumbrances or title defects.
More Property Ownership Transfer Questions
Michael Torres is purchasing a property in Westchester County, NY, that was previously owned by a corporation that has since been dissolved. His attorney recommends title insurance due to potential corporate dissolution issues. What type of title problem is the attorney most concerned about?
Michael owns a condominium unit in Brooklyn and wants to sell it to his nephew for below market value. The condominium board objects to the sale. Under New York condominium law, what authority does the board have regarding this transaction?
In New York, what is the primary difference between an owner's title insurance policy and a lender's title insurance policy?
In New York, what type of property interest does a cooperative apartment represent?
A cooperative corporation in New York has various ongoing responsibilities to its shareholders. All of the following are typical responsibilities of a co-op corporation EXCEPT:
- → David's condominium unit in Albany suffers water damage from a burst pipe in the common area. Under typical New York condominium arrangements, who is responsible for repairs to David's unit interior?
- → Under New York's recording system, what happens when two deeds for the same property are recorded on the same day?
- → Lisa owns a condominium unit and wants to rent it to tenants. The condominium bylaws contain restrictions on rentals. Under New York law, what is the general rule regarding an owner's right to rent their condominium unit?
- → Sarah purchases a condominium unit in Manhattan. As a New York condominium owner, what type of property interest does she hold in the unit itself?
- → Sarah purchased a home in Albany and received her deed on March 15th. She recorded the deed with the county clerk on April 2nd. Under New York recording law, when did Sarah's ownership become effective against third parties?
- → Mark owns a penthouse condominium unit in Manhattan that includes exclusive use of the rooftop terrace. He wants to install a hot tub on the terrace. The terrace is designated as a limited common element in the declaration. What approval does Mark need under New York law?
- → Under New York recording law, all of the following documents must be recorded to provide constructive notice to third parties EXCEPT:
- → Linda is purchasing a resale condominium unit in Yonkers. During the transaction, she discovers the seller owes three months of unpaid common charges. Under New York law, who is typically responsible for these unpaid charges at closing?
- → Jennifer Adams purchased a historic brownstone in Brooklyn, NY, with title insurance. One year later, the city claims a portion of her property for a street widening project that was authorized by a resolution passed two years before her purchase, but not recorded in the public records until after her purchase. The taking reduces her property value by $75,000. What is the most likely outcome regarding her title insurance coverage?
- → Robert is purchasing a condominium unit in Rochester. What type of deed will he receive at closing?
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