Escrow & Title
New York's recording act is a 'race-notice' statute, which means that to be protected, a subsequent purchaser for value must:
ARecord first, regardless of knowledge
BRecord first AND have no knowledge of a prior unrecorded conveyance✓ Correct
COnly have no knowledge of a prior conveyance
DOnly record their deed before the original grantor dies
Explanation
New York's recording act (Real Property Law §291) is a race-notice statute: a subsequent bona fide purchaser for value is protected only if they record their deed AND had no knowledge (actual or constructive) of a prior unrecorded conveyance at the time of purchase.
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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.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
State-Specific Concepts
Recording Requirements
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