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KS Real Estate practice questions

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Question 1National (general) real estate topics

A broker representing a seller receives a written offer from a buyer's agent. Which fiduciary duty requires the broker to tell the seller about the offer promptly?

  1. Obedience
  2. Accounting
  3. Disclosure Correct answer.
  4. Reasonable care

Explanation

The fiduciary duty of disclosure requires an agent to keep the principal fully informed of all facts material to the transaction, including every offer received. Obedience concerns following lawful instructions, accounting concerns handling money and property, and reasonable care concerns competence and diligence.

Question 2National (general) real estate topics

Which statement best describes a fee simple absolute estate?

  1. Ownership limited to a fixed term of years
  2. An estate that ends automatically when a named event occurs
  3. An estate measured by the owner's lifetime
  4. The fullest ownership, of indefinite duration Correct answer.

Explanation

A fee simple absolute estate is the largest estate recognized by law: it lasts indefinitely, may be inherited, and is freely transferable. Life estates, term-of-years estates, and defeasible fees are all more limited.

Question 3National (general) real estate topics

Which feature distinguishes a tenancy in common from a joint tenancy?

  1. Each co-owner must take an equal share
  2. Ownership must be held by spouses only
  3. There is no right of survivorship Correct answer.
  4. Ownership must be acquired at the same time

Explanation

Tenants in common hold undivided interests that pass through probate to their heirs, because there is no survivorship feature. Joint tenants must acquire title at the same time, by the same deed, with equal shares and identical rights, and the survivor takes the whole.

Question 4National (general) real estate topics

Which of these is a protected class under the federal Fair Housing Act?

  1. Familial status Correct answer.
  2. Occupation
  3. Source of income
  4. Marital status

Explanation

The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability. Source of income and marital status are protected in some states and localities but not by the federal statute.

Question 5National (general) real estate topics

A quitclaim deed does which of the following?

  1. Title with a general warranty against all claims
  2. Only the interest retained after a foreclosure sale
  3. Whatever interest the grantor may have, with no warranties Correct answer.
  4. Title with a special warranty limited to the grantor's acts

Explanation

A quitclaim deed releases whatever right, title, or interest the grantor holds at the moment of conveyance and contains no covenants of title. A general warranty deed and a special warranty deed both carry promises that the quitclaim deed lacks.

Question 6National (general) real estate topics

Under an exclusive right-to-sell listing, the seller owes the broker a commission when which of the following occurs?

  1. Whenever the seller lists with more than one broker
  2. Whenever the property sells during the term, whoever procures the buyer Correct answer.
  3. Only when the broker personally produces a ready, willing, and able buyer
  4. Only when the broker's own advertising produces the buyer

Explanation

An exclusive right to sell entitles the broker to compensation if the property is sold during the listing period by anyone, including the seller or another licensee. An exclusive agency listing pays the broker only if the broker or another licensee, rather than the seller, produces the buyer.

Question 7National (general) real estate topics

For the sale of a house built in 1970, federal law requires the seller to do which of the following?

  1. Provide a ten-year warranty against lead hazards
  2. Have the home tested for radon and lead in the soil
  3. Disclose known lead hazards and give an EPA pamphlet Correct answer.
  4. Remove all lead-based paint before the closing date

Explanation

Sellers of housing built before 1978 must disclose known lead-based paint and hazards and give buyers the EPA pamphlet on lead hazards, and the buyer must be offered a period (normally 10 days) to test. No law requires sellers to remove the paint or warranty the property against lead.

Question 8National (general) real estate topics

Which of the following must be in writing to be enforceable?

  1. A contract for the sale of a condominium unit Correct answer.
  2. An oral agreement to paint a house for $3,000
  3. An oral agreement to rent a storage unit for two months
  4. A six-month lease of an apartment at $1,200 per month

Explanation

The statute of frauds requires land sale contracts, most long-term leases, and certain other agreements to be in writing and signed by the party to be charged. Short-term leases and ordinary service contracts may be enforced orally.

Question 9National (general) real estate topics

A homeowner's mortgage is recorded on March 1. A contractor's mechanic's lien, for work begun February 10, is recorded April 5. Which lien generally has priority?

  1. The mechanic's lien, but only if work was completed before March 1
  2. Neither; the two liens share priority equally
  3. The mortgage, because it was recorded before the mechanic's lien was filed
  4. The mechanic's lien, because priority dates from the start of work Correct answer.

Explanation

Mechanic's lien priority usually relates back to the visible commencement of the work, so a lien for work begun before the mortgage was recorded can come ahead of that mortgage. Filing date alone does not control this contest.

Question 10National (general) real estate topics

An easement appurtenant does which of the following?

  1. Benefits a neighboring parcel and passes with the title Correct answer.
  2. May be revoked at any time by the servient owner
  3. Benefits a particular person rather than a parcel of land
  4. Ends automatically when the dominant parcel is sold

Explanation

An easement appurtenant attaches to a dominant parcel and burdens a servient parcel, so it transfers automatically with the dominant land when that land is conveyed. An easement in gross benefits a person or entity instead of a parcel.

Question 11National (general) real estate topics

A lender pays a brokerage a cash fee for each borrower the brokerage refers who actually closes a loan. Under RESPA, this practice is which of the following?

  1. Prohibited only when the borrower pays the fee directly
  2. Permitted if the fee is under the state's usury limit
  3. Prohibited, because unearned referral fees are illegal Correct answer.
  4. Permitted if the fee is disclosed on the Closing Disclosure

Explanation

Section 8 of RESPA bars giving or accepting anything of value in exchange for the referral of settlement service business. Disclosure does not cure the violation, and the modest exception for affiliated business arrangements requires specific ownership, disclosure, and no-required-use conditions.

Question 12National (general) real estate topics

Under the TILA-RESPA integrated disclosure rules, the Closing Disclosure must be received by the consumer no later than how long before consummation?

  1. 1 business day
  2. 5 business days
  3. 7 business days
  4. 3 business days Correct answer.

Explanation

The creditor must deliver the Closing Disclosure so the consumer receives it at least three business days before consummation, allowing time to review the final terms. A revised disclosure generally restarts the three-day period if a triggering change occurs.

Question 13National (general) real estate topics

A retail store has operated in a district that was later zoned residential, with no change to the property. The store is best described as which of the following?

  1. A nuisance that is subject to immediate abatement
  2. A special exception requiring annual renewal
  3. A variance that automatically runs with the land forever
  4. A legal nonconforming use that may continue as is Correct answer.

Explanation

A use that lawfully existed before the zoning ordinance was adopted is a legal nonconforming use and may continue, although it usually cannot be enlarged or changed to another nonconforming use. A variance and a special exception come from zoning board action, not from pre-existing use.

Question 14National (general) real estate topics

A city installs sidewalks and a sewer line along a street and charges the cost to the homeowners who benefit. The charge is best characterized as which of the following?

  1. A special assessment that is a lien on the property Correct answer.
  2. A general tax lien against all property in the county
  3. A judgment lien created by a court order
  4. An ad valorem tax based on the property's market value

Explanation

A special assessment is a charge imposed on properties that receive a specific public improvement, and it typically becomes a specific lien on the benefited parcel. It is not based on value and is not a general tax or a judgment arising from litigation.

Question 15National (general) real estate topics

An appraiser is estimating the value of a 12-year-old house in a subdivision of similar homes. Which approach is most reliable?

  1. The cost approach, because the structure is relatively new
  2. The sales comparison approach, since the home is a resale Correct answer.
  3. The gross rent multiplier approach, since rentals exist
  4. The income approach, because the home is owner-occupied

Explanation

The sales comparison approach reflects the prices buyers actually pay for similar properties and is the standard method for owner-occupied residential resales. The cost approach serves newer or special-purpose properties, and the income approach serves income-producing property.

Question 16National (general) real estate topics

A borrower with a good payment history may request cancellation of private mortgage insurance on a residential loan when the principal balance reaches what percentage of the property's original value?

  1. 95 percent
  2. 75 percent
  3. 90 percent
  4. 80 percent Correct answer.

Explanation

The borrower may request cancellation once the balance reaches 80 percent of the original value, and the servicer must automatically terminate coverage at 78 percent of original value based on the amortization schedule. Payment history and other conditions must be satisfied for the borrower-requested cancellation.

Question 17National (general) real estate topics

In a state that secures home loans with deeds of trust, the neutral party who holds limited title until the debt is satisfied is the which of the following?

  1. Trustee Correct answer.
  2. Beneficiary
  3. Mortgagee
  4. Grantor

Explanation

In a deed of trust, the trustee holds bare or limited title and may conduct a nonjudicial foreclosure if the borrower defaults. The beneficiary is the lender, and the grantor is the borrower who conveys the security interest.

Question 18National (general) real estate topics

Which statement about VA-guaranteed loans is correct?

  1. A 20 percent down payment is required from the veteran
  2. The veteran must pay for mortgage insurance through the VA
  3. The VA guarantees the loan against loss to the lender Correct answer.
  4. The VA lends the funds directly to the veteran

Explanation

The Department of Veterans Affairs does not lend money; it guarantees a portion of a loan made by a private lender, which typically allows the eligible veteran to buy with no down payment. The funding fee is not mortgage insurance, and the guarantee reduces the lender's risk.

Question 19National (general) real estate topics

When a lender denies a mortgage application, the Equal Credit Opportunity Act requires the lender to do which of the following?

  1. Report the denial to the credit bureau within 7 days
  2. Notify the applicant within 90 days of the decision
  3. Give written notice and the reasons within 30 days Correct answer.
  4. Provide the applicant a copy of the appraisal within 3 days

Explanation

ECOA requires a creditor to provide notice of adverse action within 30 days, stating the specific reasons for the denial or advising the applicant of the right to learn them. The appraisal-copy rule and credit reporting are governed by other provisions and do not replace this notice.

Question 20National (general) real estate topics

A buyer takes over the seller's existing mortgage with the lender's consent, and the seller is released from further liability. This arrangement is which of the following?

  1. Novation Correct answer.
  2. Subordination
  3. Assumption
  4. Assignment

Explanation

A novation substitutes a new obligor for the original one with the lender's consent, extinguishing the seller's liability. A simple assumption leaves the original borrower secondarily liable unless the lender expressly releases that party.

Question 21National (general) real estate topics

At a local association meeting, several competing brokers agree to charge the same 6 percent commission on all listings. This agreement is which of the following?

  1. Lawful, since a majority of the local brokers agreed to the rate
  2. Lawful, because commission rates are always negotiable by law
  3. Lawful, provided the rate is published in the multiple listing service
  4. Illegal price fixing under the Sherman Antitrust Act Correct answer.

Explanation

Agreements among competitors to set commission rates are per se illegal price fixing under the Sherman Antitrust Act. Commissions must be independently set and negotiated with each client, and publication in an MLS does not cure a conspiracy.

Question 22National (general) real estate topics

A sale closes on April 15, with the seller responsible for the day of closing. Annual property taxes of $3,650 were paid in advance by the seller for the entire year. Using a 365-day year and the 30-day-month method, what credit does the seller receive at closing?

  1. $2,500
  2. $1,050
  3. $2,600 Correct answer.
  4. $1,500

Explanation

The daily rate is $3,650 divided by 365, or $10. The seller used the property for 105 days (30 + 30 + 30 + 15), or $1,050 of the tax, so the buyer owes the seller for the remaining 260 days, which is $2,600.

Question 23National (general) real estate topics

A broker lists a property and, with the written consent of both parties, acts as a dual agent. Which statement is correct?

  1. The broker may not reveal either party's confidences to the other Correct answer.
  2. The broker's duty of loyalty is owed only to the seller
  3. The broker may represent one party's interests more strongly than the other's
  4. The broker automatically becomes a transaction broker once an offer is made

Explanation

A dual agent must remain neutral and may not disclose one client's confidential information to the other, such as the seller's bottom line or the buyer's top price. The duties of loyalty and advocacy are limited, but they are not eliminated for either party.

Question 24National (general) real estate topics

A neighbor has used a path across another owner's land openly, continuously, and without permission for the full statutory period, and the owner never objected. The neighbor has most likely acquired which of the following?

  1. A license that is revocable at will
  2. A prescriptive easement Correct answer.
  3. An easement by necessity
  4. Title by adverse possession

Explanation

Open, continuous, adverse use of a defined route for the statutory period creates a prescriptive easement, which gives a right of use rather than ownership. Adverse possession would require possession of the land itself and would produce title.

Question 25National (general) real estate topics

A property listed at $400,000 sells for 95 percent of the list price. The total commission is 6 percent of the sale price, split 60 percent to the listing broker and 40 percent to the selling broker. How much does the listing broker receive?

  1. $9,120
  2. $15,200
  3. $13,680 Correct answer.
  4. $22,800

Explanation

The sale price is $380,000, and the total commission is 6 percent of that amount, or $22,800. The listing broker's 60 percent share is $13,680, while the selling broker receives the remaining $9,120.

Question 26National (general) real estate topics

Which fiduciary duty requires a real estate broker to place the principal's interests ahead of the broker's own interests?

  1. Disclosure
  2. Obedience
  3. Accounting
  4. Loyalty Correct answer.

Explanation

Loyalty is the fiduciary duty that forbids self-dealing, secret profits, and acting for an adverse party without informed consent. Disclosure, accounting, and obedience are separate fiduciary duties that an agent also owes the principal.

Question 27National (general) real estate topics

Under the federal Fair Housing Act, which of the following is a protected class in the sale or rental of housing?

  1. Marital status
  2. Color Correct answer.
  3. Source of income
  4. Occupation

Explanation

The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability. Source of income, marital status, and occupation are not federal protected classes, although some state and local ordinances add them.

Question 28National (general) real estate topics

A quitclaim deed conveys which of the following?

  1. A covenant that the grantor has not encumbered the property
  2. Whatever interest the grantor may have, without warranties Correct answer.
  3. Only a life estate measured by the grantor's life
  4. Title free and clear of all liens and encumbrances

Explanation

A quitclaim deed transfers only the grantor's present interest, if any, and contains no covenants of title. General warranty and special warranty deeds carry warranties, while a life estate deed conveys an estate measured by a life.

Question 29National (general) real estate topics

Which of the following is a general lien?

  1. A mechanic's lien for work on a specific building
  2. A mortgage recorded against a single parcel
  3. A property tax lien on one identified lot
  4. A judgment lien on all of the debtor's realty Correct answer.

Explanation

A general lien attaches to all real property of the debtor, as with a judgment lien. Mechanic's liens, mortgages, and property tax liens are specific liens tied to a particular parcel.

Question 30National (general) real estate topics

Which feature distinguishes a joint tenancy from a tenancy in common?

  1. Each co-tenant's share passes to heirs by will
  2. The right of survivorship Correct answer.
  3. Co-tenants may hold unequal fractional shares
  4. The property cannot be sold without court approval

Explanation

Joint tenancy requires the four unities and carries the right of survivorship, so a deceased co-tenant's share passes automatically to the surviving joint tenants. Tenants in common may hold unequal shares, and each share passes through probate to the owner's heirs or devisees.

Question 31National (general) real estate topics

In a cooperative, what does a resident own?

  1. A fee simple deed to a unit plus an undivided interest in the common areas
  2. Shares of stock in the corporation plus a proprietary lease to a unit Correct answer.
  3. A life estate in the unit measured by the corporation's existence
  4. A renewable leasehold in a unit for a term of years

Explanation

A cooperative resident owns personal property, typically shares or a membership in the corporation that holds title to the building, together with a proprietary lease for the unit. A condominium owner instead receives a fee simple deed to the unit plus an interest in the common elements.

Question 32National (general) real estate topics

The power of government to take private property for a public purpose upon payment of just compensation is called which of the following?

  1. Escheat
  2. Taxation
  3. Police power
  4. Condemnation Correct answer.

Explanation

Eminent domain is exercised through condemnation proceedings, and the Fifth Amendment requires just compensation when property is taken. Police power regulates use without transferring title, escheat is reversion of property for lack of heirs, and taxation is a separate sovereign power.

Question 33National (general) real estate topics

Which person must hold a real estate license?

  1. A bank officer who approves a mortgage loan application
  2. A person who negotiates the sale of another's house for a fee Correct answer.
  3. An attorney who gives legal advice about a boundary line dispute
  4. An owner who sells her own home without the help of a broker

Explanation

Licensing statutes reach persons who, for compensation, list, negotiate, or sell real property on behalf of others. Owners selling their own property, attorneys practicing law, and lender employees acting for the lender are generally exempt.

Question 34National (general) real estate topics

Under the Truth in Lending Act, the annual percentage rate (APR) expresses which of the following?

  1. The stated interest rate in the note, unadjusted for fees
  2. The total of principal and interest paid over the loan term
  3. The cost of credit as a yearly rate, including finance charges Correct answer.
  4. The lender's yield after the loan has been sold to a secondary-market investor

Explanation

Regulation Z implements TILA and requires the APR to reflect the finance charge, including certain closing costs and mortgage insurance premiums, expressed as a yearly rate so borrowers can compare loan offers. The note rate alone ignores those charges, and total payments over the term express dollars rather than a rate.

Question 35National (general) real estate topics

Under RESPA, a lender that maintains an escrow account for taxes and insurance may hold a cushion of no more than which amount?

  1. One-sixth of the total annual escrow payments Correct answer.
  2. Two months of principal and interest payments
  3. One-twelfth of the original loan amount
  4. Three times the monthly escrow deposit

Explanation

Section 10 of RESPA and Regulation X limit the escrow cushion to no more than one-sixth of the total annual escrow payments, roughly two months of deposits. Amounts above that limit must be refunded or credited to the borrower.

Question 36National (general) real estate topics

An appraiser finds that a house has lost value because a landfill opened nearby. This loss is best described as which of the following?

  1. Deferred maintenance
  2. Functional obsolescence
  3. Economic obsolescence Correct answer.
  4. Physical deterioration

Explanation

Economic, or external, obsolescence results from forces outside the property such as neighborhood nuisances and is generally incurable by the owner. Physical deterioration and deferred maintenance involve the condition of the improvements, while functional obsolescence is a defect in design or utility.

Question 37National (general) real estate topics

Highest and best use is best defined as which of the following?

  1. The most intensive use allowed under the current zoning ordinance
  2. The use that most of the nearby property owners would prefer
  3. The use that produces the highest gross income in the first year of operation
  4. The legally permissible, financially feasible use that is most productive Correct answer.

Explanation

Highest and best use must satisfy four tests: legally permissible, physically possible, financially feasible, and maximally productive. Zoning is only one constraint, and neighborhood preference or first-year gross income does not control the analysis.

Question 38National (general) real estate topics

To qualify for a like-kind exchange under IRC Section 1031, the replacement property generally must be identified within how many days after the transfer of the relinquished property?

  1. 60 days
  2. 30 days
  3. 45 days Correct answer.
  4. 180 days

Explanation

The exchanger must identify replacement property within 45 days and close on the acquisition within 180 days, or by the due date of the tax return if that is earlier. Both periods run from the transfer of the relinquished property.

Question 39National (general) real estate topics

The Americans with Disabilities Act requires which of the following?

  1. Residential landlords must provide personal care attendants for disabled tenants
  2. Public accommodations must remove barriers where readily achievable Correct answer.
  3. All single-family rental homes must install wheelchair ramps at the owner's cost
  4. Landlords must modify apartment units at their own expense when a tenant requests it

Explanation

Title III of the ADA requires places of public accommodation to remove architectural barriers when removal is readily achievable, and Title I governs employment. Most residential rental practices are governed by the Fair Housing Act rather than the ADA.

Question 40National (general) real estate topics

A homeowner wants to build an addition that would exceed the maximum lot coverage allowed by the zoning ordinance. The owner should seek which of the following?

  1. A variance Correct answer.
  2. A nonconforming use certificate
  3. A zone change
  4. A special use permit

Explanation

A variance grants relief from a dimensional or use requirement of the zoning ordinance when the parcel suffers a hardship not shared by surrounding owners. A special use permit authorizes a listed conditional use, and rezoning changes the classification of the property.

Question 41National (general) real estate topics

An owner's title insurance policy typically protects the insured against which of the following?

  1. Flood damage to the improvements on the land
  2. Loss caused by the owner's failure to pay property taxes after closing
  3. Wear and tear on the structure over time
  4. Title defects that existed at closing but were unknown to the buyer Correct answer.

Explanation

An owner's policy covers covered title risks that existed at closing, up to the policy amount, and the premium is normally paid once at closing. It does not insure casualty losses or problems the insured creates after acquiring title.

Question 42National (general) real estate topics

Which statement about a buyer agency agreement is correct?

  1. It guarantees that the buyer will qualify for financing at the stated rate
  2. It is enforceable even when the parties never put it in writing
  3. It creates a fiduciary duty running from the broker to the buyer Correct answer.
  4. It makes the buyer's broker a subagent of the listing broker

Explanation

A buyer agency agreement establishes the broker as the buyer's agent, owing fiduciary duties to the buyer as principal. Compensation agreements for agency typically must be written to be enforceable, and a buyer's agent represents the buyer rather than the listing broker.

Question 43National (general) real estate topics

A four-unit building generates $60,000 in annual gross income and sells for $600,000. What is the gross rent multiplier?

  1. 10 Correct answer.
  2. 100
  3. 6
  4. 0.1

Explanation

The gross rent multiplier equals sale price divided by gross annual income: $600,000 divided by $60,000 equals 10. It is a quick screening tool that ignores vacancy and operating expenses.

Question 44National (general) real estate topics

A property has an assessed value of $200,000 and is taxed at $12 per $1,000 of assessed value. What is the annual property tax?

  1. $1,200
  2. $24,000
  3. $240
  4. $2,400 Correct answer.

Explanation

Divide the assessed value by 1,000 to find the number of tax units, then multiply by the rate: 200 units times $12 equals $2,400. Mill rates are applied to assessed value in the same manner.

Question 45National (general) real estate topics

Which statement about the National Flood Insurance Program is correct?

  1. It is a federal program under which private insurers write policies Correct answer.
  2. Coverage is limited to the building and never includes personal property
  3. It covers damage from any water-related loss, including sewer backups
  4. It is available only to owners of property in coastal counties

Explanation

The NFIP is a federal program in which participating communities adopt floodplain ordinances and private insurers sell and service policies under federal rules. Eligible property owners may buy coverage for both buildings and contents.

Question 46National (general) real estate topics

A duplex produces a net operating income of $24,000 and sells for $300,000. What capitalization rate does this indicate?

  1. 12.5%
  2. 1.25%
  3. 8% Correct answer.
  4. 4%

Explanation

The capitalization rate equals net operating income divided by sale price: $24,000 divided by $300,000 equals 0.08, or 8 percent. The rate converts a single year's income into an estimate of value and reflects risk and return expectations.

Question 47National (general) real estate topics

Under Regulation Z, when may a borrower rescind a refinance of a principal residence secured by a mortgage?

  1. Never, because the borrower received disclosures and signed voluntarily at closing
  2. Only when the lender denies the application after receiving the disclosures
  3. Within 30 days after the borrower makes the first monthly payment
  4. Until the third business day after closing or after disclosures are delivered Correct answer.

Explanation

TILA gives a three-business-day right to rescind certain loans secured by the borrower's principal dwelling, typically refinances and home equity loans. The period runs from the later of closing, delivery of the required disclosures, or delivery of the notice of the right to rescind, and purchase-money loans are not rescindable.

Question 48National (general) real estate topics

Under CERCLA, which party may be held liable for the cost of cleaning up hazardous substances on a property?

  1. Only a current owner who purchased with actual knowledge of the contamination
  2. Current owners, past owners, and generators and transporters of the waste Correct answer.
  3. Only a party who owned the site at the time the waste was deposited
  4. Only the party who actually placed the hazardous waste on the site

Explanation

CERCLA imposes strict, joint and several liability on current owners and operators, owners and operators at the time of disposal, generators of the waste, and transporters who selected the disposal site. Liability generally attaches regardless of fault or knowledge.

Question 49National (general) real estate topics

Under FIRPTA, when a foreign person sells U.S. real property, the buyer must generally do which of the following?

  1. Withhold a percentage of the gross sales price and remit it to the IRS Correct answer.
  2. File a report with the state real estate commission within 30 days
  3. Obtain a court order approving the transfer
  4. Pay the seller's capital gains tax directly with the annual return

Explanation

FIRPTA requires the buyer, as transferee, to withhold 15 percent of the amount realized and remit it to the IRS within 20 days, with a reduced 10 percent rate available for certain residence purchases of $1,000,000 or less. A withholding certificate or an exemption may reduce or eliminate the withholding.

Question 50National (general) real estate topics

Seller delivers a deed to Buyer 1, who does not record. Seller then conveys the same parcel to Buyer 2, who pays value, has no notice of the first sale, and records immediately. In a race-notice state, who owns the parcel?

  1. Buyer 1, because delivery of the deed occurred before the second sale
  2. Neither buyer; title reverts to the seller
  3. Buyer 2, because Buyer 2 recorded first without notice of the sale Correct answer.
  4. Buyer 2, but only if the first deed was a quitclaim deed

Explanation

A race-notice recording statute protects a later purchaser who takes without notice of the prior conveyance and records first. A pure notice state would protect Buyer 2 without regard to who recorded first, while a race state would protect the first to record regardless of notice.