Escrow & Title

Under California's race-notice recording statute, a subsequent purchaser prevails over a prior unrecorded deed if the subsequent purchaser:

ARecords their deed before the prior purchaser, regardless of notice
BRecords their deed first AND had no actual or constructive notice of the prior conveyance at the time of purchase✓ Correct
CSimply paid a higher price for the property
DPurchased the property from a licensed real estate broker

Explanation

California follows a race-notice recording statute. A subsequent purchaser (or encumbrancer) prevails over a prior unrecorded interest only if they (1) take without actual or constructive notice of the prior interest, AND (2) record their interest before the prior claimant. Both conditions must be satisfied.

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