Also known as:race notice jurisdiction · race-notice · race notice · race-notice statute · race notice recording
Written by attorneys · grounded in primary & secondary sources — see below
A type of recording statute under which a subsequent purchaser who takes without notice of a prior unrecorded interest and who records first prevails over that prior interest. The statute requires the later taker to satisfy three elements at acquisition: good faith, valuable consideration, and absence of actual or constructive notice. Failure to meet any element leaves the subsequent purchaser unprotected and subject to the common-law first-in-time rule.
Sources & Authorities
How it applies
Common Examples
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Inquiry Notice Defeats BFP Status
Rina Rahman bought a lakeside cabin from the owner and immediately took possession, branding the cabins and renting them to guests, but never recorded her deed. A year later the owner sold the entire property to Riverfront Developments, whose agents toured the site, saw the separately branded and operated cabins, and made no further inquiry. Under the race-notice statute Riverfront Developments recorded first yet lost to Rahman because its visible possession put it on inquiry notice, preventing bona-fide-purchaser status.
Visible Construction Triggers Notice
Robert Rivera purchased a vacant parcel, paid full price, took possession, graded the site, and stored construction materials there without recording. A month later the seller gave a mortgage to Redline Automotive, which promptly recorded. Ridgeview Builders later bought the parcel, its project manager observed the fresh grading and materials, and it recorded immediately. Because the visible work placed Ridgeview on inquiry notice, it was not a bona fide purchaser and Rivera retained priority under the race-notice statute.
Put it into practice
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Practice Questions5
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Cases
Common Law
Restatements
Casebooks
Study Supplements
Forged Deed and Recording Priority
Rajesh Rao received a forged deed to a warehouse and never recorded. The true owner later conveyed the same property by warranty deed to Regal Apparel, which paid value, had no notice of the forgery, and recorded promptly. Because Regal Apparel satisfied the race-notice requirements of good faith, value, and first recording, it took free of Rao's void claim.
Common questions
Frequently Asked
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What three elements must a subsequent purchaser satisfy to prevail under a race-notice statute?+
The purchaser must take in good faith, give valuable consideration, and lack actual or constructive notice of the prior unrecorded interest at the time of acquisition. Recording first is also required. A purchaser with inquiry notice fails the notice element and cannot claim priority.
Supporting sources
Does open possession by a prior grantee defeat a later purchaser's claim in a race-notice jurisdiction?+
Yes. Visible possession that is inconsistent with the record owner's title puts a reasonable buyer on inquiry notice. The later purchaser who ignores those facts is not a bona fide purchaser and cannot prevail even if it records first.
Supporting sources
How does a race-notice statute differ from a pure notice statute?+
Both protect a subsequent purchaser without notice, but a race-notice statute additionally requires that purchaser to record before the prior interest is recorded. A pure notice statute awards priority to the later bona fide purchaser regardless of who records first.
Supporting sources
Real PropertyTitles · Recording actsNEXTGENFoundational