Escrow & Title
A buyer in South Dakota who takes title with knowledge of an existing unrecorded lease is:
ANot bound by the lease because it was unrecorded
BBound by the lease because they had actual notice of it✓ Correct
CProtected by the recording statute automatically
DRequired to re-execute the lease to bind themselves
Explanation
Recording statutes protect subsequent purchasers who take without notice. A buyer who has actual knowledge of an unrecorded lease cannot use the recording act to defeat the tenant's rights.
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