Escrow & Title
Colorado's 'race-notice' recording statute protects a subsequent purchaser who:
ARecords first regardless of any prior knowledge of unrecorded interests
BRecords first AND had no knowledge (notice) of a prior unrecorded interest at the time of purchase✓ Correct
CPays the highest price for the property
DIs the first to physically take possession of the property
Explanation
Under Colorado's race-notice recording statute, a subsequent bona fide purchaser is protected only if they (1) had no actual or constructive notice of a prior unrecorded interest AND (2) recorded their deed first.
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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).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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