What concept protects a buyer who records their interest first in a real estate transaction?

The concept that protects a buyer who records their interest first in a real estate transaction is known as Race Notice. This principle is essential in real property law, particularly in jurisdictions following the race-notice recording statutes.

In a Race Notice jurisdiction, to have priority over other claims, a purchaser must be both a bona fide purchaser (acting in good faith) and must record their interest before any conflicting claims are recorded. This means recording provides a public notice of the buyer’s interest and protects the buyer's rights against subsequent purchasers or claimants who might not be aware of the first buyer's interest. It ensures that the one who is diligent enough to record first has their rights recognized over those who may have previous claims but failed to record them promptly.

This principle emphasizes the importance of recording interests in real property to establish priority. Consequently, buyers are encouraged to promptly record their deeds or interests to protect themselves from claims that could arise from subsequent transactions.