Property OwnershipIntermediateAlabama Exam

The recording act in Alabama protects which subsequent purchasers against prior unrecorded interests?

AAll purchasers regardless of knowledge
BBona fide purchasers for value who had no actual or constructive notice of the prior interestCorrect
COnly those who paid the full market value, though outcomes can differ depending on circumstances
DOnly government entities

Why Bona fide purchasers for value who had no actual or constructive notice of the prior interest Is Correct

Answer B: Bona fide purchasers for value who had no actual or constructive notice of the prior interest

Alabama's recording act protects subsequent purchasers (and lenders) who are bona fide purchasers for value without actual or constructive notice of a prior unrecorded interest.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

People Also Study

Math Concepts

State-Specific Concepts

Recording Requirements

Study This Topic

Practice More Alabama Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Alabama Quiz →