Escrow & Title

In Tennessee, a purchaser who takes title with actual or constructive notice of an earlier, unrecorded interest:

AIs fully protected by recording the new deed immediately
BTakes title subject to the earlier interest — notice eliminates the protections of the recording acts✓ Correct
CIs protected automatically under Tennessee's race-notice statute
DMust litigate ownership in Chancery Court

Explanation

Tennessee's recording act (race-notice type) protects subsequent purchasers who take for value without notice. A buyer who has actual or constructive notice of an earlier interest cannot claim protection as a bona fide purchaser without notice — they take subject to the earlier interest.

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