FACTS: John Smith was the owner of the property. Smith signed the property over to Quincy by way of a Quit Claim Deed. Quincy did not record the Deed. Subsequently, some years later, Smith then signed a Quit Claim Deed to the John Smith Family Trust, of which John Smith was the only Trustee, and recorded the Deed.

ISSUE: Who is the owner of the property?

ANSWER: Quincy.

DISCUSSION:

Deeds should be recorded in the office of the county recorder in which the property is located. If a deed is not recorded, it is binding between the grantor and grantee but void as to creditors and subsequent purchases for valuable consideration without notice (such as a recorded deed with the county recorder’s office.) A.R.S. §33-412.

A bona fide purchaser (BFP) is a purchaser for value without notice and is used to refer to an innocent party who purchases property without notice of any other party’s claim to the title of that property (such as a recorded document).

Here, because John Smith signed both Deeds, the John Smith Family Trust was not a BFP. The Quit Claim Deed to the Trust would not be valid because the Trust had “notice” that Quincy was the owner of the property.