Escrow & Title

Vermont's 'recording act' is best described as which type?

ARace statute — the first to record always wins
BNotice statute — a subsequent buyer who takes without notice of a prior unrecorded interest takes free of that interest✓ Correct
CRace-notice statute — a subsequent buyer prevails only if they record first AND take without notice
DVermont has no recording act

Explanation

Vermont follows a notice recording act (27 VSA § 342). A subsequent purchaser who takes title without actual or constructive notice of a prior unrecorded interest takes free of that interest. This protects innocent purchasers who conduct thorough title searches and record promptly.

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