MBE Rules · Real Property
Recording acts
The rule
Race: first to record wins, regardless of notice. Notice: subsequent BFP without notice wins (even if records later). Race-notice: subsequent BFP without notice wins ONLY IF records first. Notice = actual, constructive (recorded), or inquiry. BFP must take for value (not a donee).
In plain English
Recording acts determine who gets ownership of property when multiple people claim it. Depending on the type, the first to record, or the buyer without notice who records first, might win.
Worked example
Buyer A buys a house from Seller and records the deed. Later, Buyer B buys the same house without knowing about Buyer A and records their deed. In a race state, Buyer A keeps the house because they recorded first.
Memory hook
Record to Win the Race! First to record prevails, unless notice changes the pace.
The trap
Students think: Notice always protects. Wrong, because race and race-notice require recording first. The actual test is the jurisdiction's specific statute.
How examiners test it
Test setup: two parties claim title, one records first, the other a BFP. Trap: assuming BFP always wins. Check if jurisdiction is race, notice, or race-notice.
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