Escrow & Title
Under the California 'race-notice' recording statute, a subsequent buyer is protected if they:
ARecord their deed first, regardless of knowledge of prior transfers
BRecord their deed first AND take without knowledge of a prior unrecorded transfer✓ Correct
CAre the first to take possession of the property
DPurchase the property at fair market value
Explanation
California has a race-notice recording statute: a subsequent purchaser is protected if they (1) record first AND (2) took without actual or constructive notice of a prior unrecorded interest. Both conditions must be met — recording alone is not enough if the buyer knew of the prior transfer.
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