Escrow & Title
A Colorado property is sold and the deed is signed but not yet recorded. Before recording, a second buyer who has no knowledge of the first sale purchases the same property and immediately records their deed. Under Colorado's race-notice statute, who prevails?
AThe first buyer since they signed the deed first
BThe second buyer who recorded first without knowledge of the first sale✓ Correct
CThe seller since both sales are void
DNeither buyer — the property reverts to the state
Explanation
Under Colorado's race-notice statute, the second buyer prevails if they (1) had no actual or constructive notice of the first transaction when they purchased AND (2) recorded their deed first. This is why prompt recording of deeds is critical in Colorado.
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