Escrow & Title
Colorado uses which public records system to establish priority of claims against a property?
ARace statute — first to record wins regardless of notice
BNotice statute — subsequent bona fide purchasers without notice prevail
CRace-notice statute — first to record without notice of prior claims prevails✓ Correct
DTorrens system for all residential properties
Explanation
Colorado is a race-notice state. A subsequent purchaser must both (1) take without notice of a prior unrecorded interest and (2) record first in order to prevail over a prior unrecorded interest.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Math Concepts
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