Practice question
A valid assignment instrument remains unrecorded for more than three months. Afterwards, while it is still unrecorded, the same interest is purchased by another person for value without notice of that instrument. No other fact changes section 106.2's application. The earlier assignee then records and claims that late recording necessarily defeats the protected purchaser. Which answer is best?
- Late recording always defeats every earlier intervening purchaser.
- Recording is never relevant to subsequent purchasers.
- The first instrument is necessarily void for every purpose from its execution.
- Section 106.2 protects the specified subsequent purchaser; the earlier instrument was not recorded within three months or before that purchase.
- The subsequent buyer automatically becomes a notary.
Legal references
- Intellectual Property Code, RA 8293, sections 103–106, https://lawphil.net/statutes/repacts/ra1997/ra_8293_1997.html
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