Also known as: race notice · race-notice statute · race notice statute · race-notice jurisdiction · race-notice recording act
Written by attorneys · grounded in primary & secondary sources — see below
A statutory rule governing priority of interests in real property under which a subsequent purchaser who acquires the property for value without notice of a prior unrecorded conveyance prevails if that purchaser records first.
Ralph Richardson conveyed vacant land to Ricardo Rojas but left the deed unrecorded. Richardson then conveyed the same parcel to Rajesh Rao, who paid value and had no notice of the prior deed. Rao recorded immediately. Under the race-notice statute Rajesh Rao holds superior title because he recorded before Rojas.
Raphael Rivera secretly deeded his condo to Regina Robinson but left the deed in a drawer. Rivera later sold the condo to Ruby Rivera, a startup, which paid value. Before closing Ruby Rivera saw a mailbox labeled with Regina Robinson's name and observed her on the premises. Because the mailbox created inquiry notice Ruby Rivera cannot prevail even though it recorded first.
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Raven Logistics forged a deed purporting to convey land from Reliance Insurance and recorded it. Reliance Insurance later conveyed the same land to Riverside Healthcare, which paid value without notice of the forgery and recorded first. Riverside Healthcare prevails under the race-notice statute because it satisfies the requirements of a subsequent bona fide purchaser who records first.
A subsequent purchaser must take in good faith, pay valuable consideration, lack actual or constructive notice of the prior interest at acquisition, and record before the prior interest is recorded.
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Yes. Facts that would prompt a reasonable buyer to investigate further create inquiry notice that disqualifies the purchaser from protection even if the purchaser lacks actual knowledge.
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A pure notice statute protects a subsequent purchaser without notice regardless of recording order. A race-notice statute adds the requirement that the subsequent purchaser must also record first.
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No. The prior grantee's failure to record leaves the interest vulnerable once a subsequent purchaser meets the statute's notice and first-to-record conditions.
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