Escrow & Title
Under New York's recording statutes, a subsequent purchaser who records first will take title free of a prior unrecorded interest IF the subsequent purchaser:
APaid any amount of consideration, even $1
BPaid valuable consideration and had no actual or constructive notice of the prior interest at the time of purchase✓ Correct
CWas a family member of the seller
DFiled a lis pendens before the prior purchaser
Explanation
New York follows a 'race-notice' recording statute. A subsequent purchaser is protected only if they (1) paid valuable consideration and (2) had no actual or constructive notice of the prior unrecorded interest at the time of purchase, AND (3) recorded first. All three elements must be met.
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