Escrow & Title
A Kentucky buyer closes on a home and does not record the deed immediately. Before the deed is recorded, the seller transfers the same property to another buyer who records their deed first. Under Kentucky's recording statute, who has priority?
AThe first buyer, since they purchased first in time
BThe second buyer, if they recorded without notice of the prior sale✓ Correct
CThe seller retains the property since double transfer is fraud
DThe title company that issued the first policy
Explanation
Kentucky's recording statute (KRS 382.270) provides that an unrecorded deed is void against a subsequent purchaser who pays valuable consideration and records without notice of the prior unrecorded deed.
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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.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Math Concepts
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