Bob and Keith are negotiating the conveyance of BlackAcre. Bob hands keith a Warranty Deed for inspection, and indicates that the conveyance, if fully performed, will be substantially in the form of a warranty deed. Although Keith has not paid the purchase price yet, he hands the Warranty Deed to his son and tells him to take the Deed to the County recorder's office for filing and recording. Three days later, Keith Delivers the purchase price to Bob. However, by that time, Bob had given Blackacre to Jimbo as a gift. Jimbo recorded the Gift Deed the day before Bob received payment.
Race?
Notice?
Race-Notice?
Race/Notice/Race-Notice who wins here? Forum
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clarion
- Posts: 235
- Joined: Tue Nov 08, 2011 5:53 pm
Re: Race/Notice/Race-Notice who wins here?
If you're still looking for help, my analysis is as follows: Jimbo wins race, Keith wins notice, and neither wins race-notice.
Jimbo is not a BFP for value because it was gifted to him (no consideration). Therefore he can't win notice or race-notice (which both require the second party to be a BFP for value). Keith would therefore win notice since recordation isn't necessary for a party to win notice, just that there isn't a subsequent BFP for value. And neither would win race-notice until Keith records because, again, to satisfy the "notice" aspect, you must be a BFP for value and thus Jimbo doesn't qualify even though he won the "race."
All that said, we didn't discuss in my classes the effect (if any) that a warranty deed has on the recordation statutes. So if those alter the answers in anyway I wouldn't know.
Jimbo is not a BFP for value because it was gifted to him (no consideration). Therefore he can't win notice or race-notice (which both require the second party to be a BFP for value). Keith would therefore win notice since recordation isn't necessary for a party to win notice, just that there isn't a subsequent BFP for value. And neither would win race-notice until Keith records because, again, to satisfy the "notice" aspect, you must be a BFP for value and thus Jimbo doesn't qualify even though he won the "race."
All that said, we didn't discuss in my classes the effect (if any) that a warranty deed has on the recordation statutes. So if those alter the answers in anyway I wouldn't know.
