Escrow & TitleIntermediateAlaska Exam

Under Alaska's recording system, the first party to record a deed takes priority over a subsequent unrecorded deed ONLY if the recording party:

APaid a higher price for the property
BHad no actual or constructive notice of the prior unrecorded deed and recorded firstCorrect
CObtained legal advice before purchasing
DUsed a licensed real estate agent in the transaction, subject to the usual exceptions

Why Had no actual or constructive notice of the prior unrecorded deed and recorded first Is Correct

Answer B: Had no actual or constructive notice of the prior unrecorded deed and recorded first

Under Alaska's race-notice recording statute, a subsequent purchaser takes priority over a prior unrecorded interest only if they (1) purchased without actual or constructive notice of the prior deed and (2) recorded their instrument before the prior deed was recorded. Both conditions must be met.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

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