Caruso v. Parkos
Supreme Court of Nebraska
637 N.W.2d 351 (2002)
Virginia Parkos executed a deed conveying property to her daughters Carol and Susan (plaintiff) in June 1997, delivering it unconditionally to her attorney for recording, and Carol then deeded her share to Susan; neither deed was recorded right away. In October 1997, Virginia executed a second deed conveying the same property to her son James (defendant), which was recorded first, before the attorney finally recorded the earlier June deeds. Susan sued to quiet title; James argued the June deed was never validly delivered, was procured by undue influence, and that he was a bona fide purchaser since his deed recorded first. The trial court ruled for Susan, and James appealed.
Whether a subsequent purchaser can claim bona fide purchaser status, and thereby defeat an earlier unrecorded deed, when the purchaser had actual notice of the earlier transfer.