Under NC's recording act, a bona fide purchaser for value (BFP) who takes without notice of a prior unrecorded claim and records first will:
Why Prevail over the prior unrecorded interest — NC's race-notice recording act protects subsequent purchasers who record first without notice Is Correct
Answer B: Prevail over the prior unrecorded interest — NC's race-notice recording act protects subsequent purchasers who record first without notice
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
People Also Study
Related North Carolina Questions
- Under North Carolina's 'race-notice' recording statute, a subsequent buyer is protected against a prior unrecorded conveyance if the subsequent buyer:Property Ownership
- In NC's race-notice recording statute, a later purchaser is protected over an earlier purchaser IF the later purchaser:Escrow & Title
- Which type of deed conveys whatever interest the grantor has, with no warranties?Escrow & Title
- Constructive notice in North Carolina real estate means:Escrow & Title
- Recording a deed in North Carolina's Register of Deeds provides:Escrow & Title
Key Terms to Know
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
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.
State-Specific Concepts
Study This Topic
Practice More North Carolina Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →