Also known as: notice race · race-notice
Written by attorneys · grounded in primary & secondary sources — see below
A type of recording statute under which a subsequent purchaser prevails over a prior unrecorded interest only if the purchaser takes without notice of that interest and records first.
Naomi Norton conveyed an apartment building to Natalie Norris, who recorded the deed in the wrong county. Two months later Naomi conveyed the same building to Neil Nair for value. Neil searched the correct county records, found nothing, and promptly recorded there. Under the race-notice statute Neil prevails because he purchased without notice and recorded first in the proper office.
Nadia Novak conveyed a lakeside tract to Nicole Navarro, who paid value and recorded promptly. Earlier, Nadia had conveyed a cabin site on the tract to Noelle North by an unrecorded deed. Noelle had occupied the visible cabin for years, posted rules, and was known locally as the owner. Because Nicole had inquiry notice from the open possession, she is not a bona fide purchaser and Noelle's prior interest prevails.
Select any source to read its text and confirm it supports the definition.
Norton Bank received a forged deed to a parcel from a fraudster. The bank paid value, lacked notice of the forgery, and recorded first under the race-notice statute. The true owner later sued. The bank's status as a subsequent purchaser without notice who recorded first gives it priority over the true owner's claim in this jurisdiction.
The purchaser must show that it paid value, took in good faith without actual, record, or inquiry notice of the prior unrecorded interest, and recorded first in the proper office. Failure on any element leaves the prior interest superior.
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No. Recording outside the county where the land lies does not provide constructive notice in the correct county. The prior deed remains unrecorded as to a later purchaser who searches the proper records.
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Visible, open, and notorious possession by another party, such as a cabin with posted rules or a garage bearing a name, puts a reasonable purchaser on inquiry notice. The purchaser is charged with whatever a reasonable investigation would reveal and therefore cannot qualify as a bona fide purchaser.
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