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Missouri follows which recording system?

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Question & Answer

Review the question and all answer choices

A

Torrens system

The Torrens system is a title registration system β€” not a recording statute β€” used in a small number of states like Minnesota and Hawaii, where a court issues a certificate of title that is conclusive evidence of ownership; Missouri does not use the Torrens system and instead relies on the traditional deed recording system.

B

Race-notice recording statute

Correct Answer
C

Pure race statute

A pure race statute, used in states like North Carolina and Louisiana, awards priority simply to whoever records first, regardless of whether they had knowledge of a prior unrecorded claim; Missouri rejects this approach because it would allow a bad-faith buyer who knows of a prior sale to win simply by running to the recorder's office first.

D

Pure notice statute

A pure notice statute protects subsequent bona fide purchasers without notice of prior claims, even if they never record their own deed; Missouri's statute is stricter than pure notice because it also requires the subsequent purchaser to actually record first, making 'pure notice statute' an incorrect characterization of Missouri law.

Why is this correct?

Missouri follows a race-notice recording statute under Missouri Revised Statutes Section 442.400, which provides that an unrecorded instrument is void against a subsequent purchaser who pays valuable consideration, has no notice of the prior instrument, and records first. This means a buyer in Missouri must both be a bona fide purchaser without notice AND must record before the competing claimant to win the priority dispute. The race-notice system reflects Missouri's policy of rewarding diligent, good-faith buyers who promptly record their interests while protecting the integrity of the public recording system.

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