Property Ownership
In New York, a 'purchaser in good faith' (or bona fide purchaser) for value without notice is protected by the recording system because:
AThey recorded their deed before any dispute arose
BThey paid fair market value, had no actual or constructive notice of prior unrecorded interests, and recorded first — giving them priority over earlier unrecorded interests✓ Correct
CThey were represented by a licensed real estate attorney
DThey paid the full assessed value as the purchase price
Explanation
Under New York's race-notice recording statute (Real Property Law section 291), a bona fide purchaser (BFP) who pays valuable consideration, has no actual or constructive notice of prior unrecorded interests, AND records first takes title free of those prior interests. All three elements must be satisfied.
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