Under the Race Act (PROP), which result determines priority?

Prepare for the Themis MBE Real Property Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your test!

Multiple Choice

Under the Race Act (PROP), which result determines priority?

Explanation:
Under this rule, priority is determined by both timing and good faith. The party who wins is the one who is a bona fide purchaser and is also the first to record. This means a first-to-record claim alone isn’t enough if the claimant isn’t a bona fide purchaser, and a bona fide purchaser who records later doesn’t win unless they were the first to record. If a buyer records first but has knowledge of a prior claim (not a BFP), they don’t get priority; if a buyer is a BFP but doesn’t record first, they also don’t win. Only someone who meets both conditions—the first to record and a bona fide purchaser—has priority.

Under this rule, priority is determined by both timing and good faith. The party who wins is the one who is a bona fide purchaser and is also the first to record. This means a first-to-record claim alone isn’t enough if the claimant isn’t a bona fide purchaser, and a bona fide purchaser who records later doesn’t win unless they were the first to record. If a buyer records first but has knowledge of a prior claim (not a BFP), they don’t get priority; if a buyer is a BFP but doesn’t record first, they also don’t win. Only someone who meets both conditions—the first to record and a bona fide purchaser—has priority.

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