Quiz: Who Gets Title? You Be the Judge

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Quiz

Who Gets Title? You Be the Judge
By Cindy Finley and Judon Fambrough

The December 1998 lead article in Letter of the Law is entitled "Deeds and Texas Recording Statutes." The article describes the application of the race-notice statute used in Texas to protect bona fide or innocent purchasers. These are buyers who pay valuable consideration for the property and take title without notice of a third party’s claim to the property. "Race" refers to the competition (or race) to be first to record the deed correctly.

Based on the race-notice statute as described in the article, determine who gets the title in Texas. Select either Buyer No. 1 (B1) or Buyer No. 2 (B2).

The seller conveys title to B1 via a warranty deed. B1 does not record the deed immediately, so the seller conveys the same property to B2 via a warranty deed. B2 is unaware of the prior conveyance at closing. B2 records the deed before B1.
B1 B2
Same facts except B2 becomes aware of the prior conveyance to B1 after closing but before recording the deed. B2 still records first.
B1 B2
Same facts except B1 learns of the second conveyance before B2 records the deed. B1 is able to beat B2 to the courthouse to record first.
B1 B2
The seller conveys title to B1 via a warranty deed. B1 does not record immediately, so the seller conveys the same property to B2 via a quitclaim deed. B2 records the deed before B1.
B1 B2
The seller conveys title to B1 via a warranty deed for full market value. B1 does not record immediately, so the seller conveys the same property to his sister (B2) via a gift deed without monetary consideration. B2 records the deed before B1.
B1 B2
The seller conveys title to B1 via a warranty deed. The property lies in two counties. B1 records in only one. The seller then conveys the property again to B2. B2 checks the records in the county where B1 did not record before buying. B2 then records the warranty deed after closing.
B1 B2
Seller conveys title to B1 via a warranty deed. B1 does not record the deed but moves on to the property. The seller then sells the property to B2 while B1 is in possession. B2 records the deed before B1.
B1 B2
Seller conveys title to B1 via a warranty deed. B1 records the deed but the county clerk indexes it incorrectly. The seller then sells the property to B2. B2 does a title search before buying but does not discover the prior conveyance due to the clerk’s error. B2 then records the deed after closing.
B1 B2
The seller conveys title to B1 via a special warranty deed. B1 does not record immediately, so the seller conveys the same land to B2 via a warranty deed. B2 is aware of the prior conveyance to B1 at closing. B2 records before B1.
B1 B2

For an explanation to all answers, click here.

Finley is a Dallas attorney and Fambrough is an attorney, member of the State Bar of Texas and senior lecturer with the Real Estate Center at Texas A&M University.

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