In the Race-Notice context, what must a subsequent purchaser do to gain priority?

In a Race-Notice context, a subsequent purchaser can gain priority by recording their interest after taking title in good faith. This principle is rooted in the idea that the legal system tends to favor those who are diligent about documenting their ownership interests.

Specifically, when a buyer purchases property, they need to take steps not only to complete the sale but also to register that transaction with the relevant authorities. By recording their deed or title shortly after acquisition, the subsequent purchaser establishes a public record of their claim to the property. This action is crucial because it puts any potential future buyers or claimants on notice of their interest, thereby providing them legal priority over any unrecorded claims that might arise later.

Good faith refers to the honest intention to deal fairly with the other parties involved and to avoid deceit. Therefore, the requirement of acting in good faith indicates that the purchaser must not only engage in the transaction honestly but also must complete their recording in a timely manner to ensure their claim is respected in cases of conflicting claims to title.

Prioritization through recording is essential in the Race-Notice system, allowing the first purchaser to both have a legitimate claim and to protect that claim through proper documentation.