New York Law (NYLE) Practice Exam

What is a bona fide purchaser's priority in property ownership?

1. A. Prioritizes anyone who entered into a verbal agreement.

2. B. Has priority if the purchase was recorded before any other conveyance.

3. C. Always has the right to claim property over and above leaseholders.

4. D. Can never lose the property once it's sold.

The correct answer is: B. Has priority if the purchase was recorded before any other conveyance.

The correct choice is that a bona fide purchaser has priority if the purchase was recorded before any other conveyance. This is grounded in property law principles that govern the rights of purchasers. A bona fide purchaser is someone who buys property in good faith, without notice of any other claims or interests in the property, and who pays valuable consideration for the property. Recording the purchase is crucial because it establishes a public record of ownership. If a bona fide purchaser's deed is recorded before any competing interests (such as another buyer's or a lease), that purchaser's claim to the property typically takes precedence. This recording system helps protect the rights of purchasers and provides a framework for determining property ownership in situations where disputes arise. While the other options touch on various aspects of property ownership, they do not accurately reflect the primary principle concerning the rights of bona fide purchasers. For instance, a verbal agreement does not create a legally enforceable claim against the property unless it is followed by an action that meets statutory requirements. Leaseholders may have certain rights that need to be considered, and ownership can be contested, especially if the relevant laws and recording practices are not applied correctly. Lastly, while bona fide purchasers enjoy strong protections, they are not immune to losing their property under certain legal