Volume 5 Winter 2011 Number 2 - Charleston Law Review

CHARLESTON LAW REVIEW [Volume 5notice, 126 race-notice, 127 and race. 128 In a notice state, a bona-fidepurchaser who gives value for the interest in land without actualnotice of a prior unrecorded mortgage has priority over theunrecorded mortgage. 129 In a race-notice state, a bona-fidepurchaser who gives value for the interest in land without actualnotice of a prior unrecorded mortgage has priority over theunrecorded mortgage only if the bona-fide purchaser records hermortgage first. 130 In a race state, the first person to record haspriority over all others. 131In race states, notice is not supposed to matter. 132 Whoeverrecords first is supposed to have priority as the plain language ofthe statutes clearly states. 133 However, such “pure” race statutesrecording statutes).126. Id.127. Id.128. Id.129. Id.130. Id.131. Id.132. See id.133. Only three states have race statutes: Delaware, Louisiana, and NorthCarolina. See 25 DEL. CODE tit. 25, § 2106 (2010), available at http://delcode.delaware.gov/title25/c021/index.shtml:214A mortgage, or a conveyance in the nature of a mortgage, of lands ortenements shall have priority according to the time of recording it inthe proper office, without respect to the time of its being sealed anddelivered, and shall be a lien from the time of recording it and notbefore.Id.LA. CIV. CODE art. 3338 (2010), available at http://www.legis.state.la.us/lss/lss.asp?doc=110389:The rights and obligations established or created by the followingwritten instruments are without effect as to a third person unless theinstrument is registered by recording it in the appropriate mortgageor conveyance records pursuant to the provisions of this Title:(1) An instrument that transfers an immovable or establishes areal right in or over an immovable.(2) The lease of an immovable.(3) An option or right of first refusal, or a contract to buy, sell, orlease an immovable or to establish a real right in or over animmovable.(4) An instrument that modifies, terminates, or transfers therights created or evidenced by the instruments described in