Question

Able conveyed real property in Michigan to Baker in a correctly draft and signed deed. Baker accurately and immediately recorded the deed with the appropriate county offices. After the recording of the deed, Able accepted money from Charlie and signed a new deed for the same property purporting to convey the property to Charlie. Charlie had not been told of the earlier transfer to Baker. In a dispute between Baker and Charlie, which of the following statements is most accurate.
A. Charlie will prevail over Baker because the deed from Able to Baker fails
B. Charlie will prevail over Baker because Charlie paid money to Able
C. Baker will prevail over Charlie because Baker recorded the deed before a Charlie paid Able for the property
D. Baker will prevail over Charlie, unless Able told Charlie of the prior transfer to Baker since that would have been his obligation

Answer 1

Answer: C. Baker will prevail over Charlie because Baker recorded the deed before a Charlie paid Able for the property.

Explanation:

As soon as Baker accurately and immediately recorded the deed with the appropriate county offices after the property was conveyed to him, he took over ownership of the property from Able.

Able received money from Charlie and signed a new deed after this had happened so Baker would prevail because Baker, not Able, owns the property and so Able cannot sell what does not belong to him.