Which act emphasizes actual and inquiry notice and reasonable investigation in determining chain of title?

Which act emphasizes actual and inquiry notice and reasonable investigation in determining chain of title?

• A. Race-NOTICE Act (Prop)
• B. Notice Act (Prop)
• C. BFP Notice (Prop)
• D. Easements (Prop)

Answer: (A)

Race-notice recording statutes require a subsequent purchaser to have no actual notice of the prior unrecorded interest and to have avoided inquiry notice by conducting a reasonable investigation, and also to record before the prior interest is recorded. This combination ties the determination of the chain of title to both what the buyer knew or could have learned (actual and inquiry notice) and the act of recording first. That emphasis on actual and inquiry notice and on reasonably finding hidden interests explains why this statute is the best fit for determining who holds title.

Race-notice recording statutes require a subsequent purchaser to have no actual notice of the prior unrecorded interest and to have avoided inquiry notice by conducting a reasonable investigation, and also to record before the prior interest is recorded. This combination ties the determination of the chain of title to both what the buyer knew or could have learned (actual and inquiry notice) and the act of recording first. That emphasis on actual and inquiry notice and on reasonably finding hidden interests explains why this statute is the best fit for determining who holds title.