An owner properly executed a deed conveying a parcel of land to a friend as a gift. The owner handed the deed to the friend, manifesting a clear intent to immediately transfer ownership. The friend accepted the deed but failed to record it. A week later, the owner died. The owner's sole heir, who was aware of the gift, discovered the deed had not been recorded and asserted ownership over the parcel.
As between the heir and the friend, who has superior title to the land?
The heir, because an unrecorded deed is invalid upon the death of the grantor.
The friend, because valid delivery of the deed was sufficient to transfer title.
The heir, because as a donee, the friend's interest is not protected against the claim of an heir.
The friend, but only if the friend records the deed before the owner's estate is settled.
The correct answer is that the friend has superior title because legal title to real property passes upon the valid delivery of a deed from the grantor to the grantee with the intent to make a present transfer. Recording the deed is not necessary to make the conveyance valid between the original parties (the owner and the friend) or their successors who are not subsequent bona fide purchasers. Recording acts protect a grantee from claims by subsequent bona fide purchasers or creditors, but they do not affect the validity of the initial transfer. Because the owner effectively transferred title to the friend before death, the property was not part of the owner's estate to be inherited by the heir.
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