B is incorrect because under a race type statute, all that matters is the order in which the interests were recorded. C is incorrect because Bessie’s interest derives from the deed which was recorded on April 3. The general warranty deed by which Marcel conveyed to Parton will determine Parton’s rights against Marcel. But D is incorrect because the recording statute determines the rights of Marcel and Bessie as against each other.
B and C are incorrect because passage of the risk of loss does not depend on the purchase of fire insurance by either party. D is incorrect because the risk of loss passed to Bryant when he took possession of the realty.
If there was an implied warranty of accuracy A is incorrect because liability is imposed without fault for its breach. If there was no implied warranty of accuracy, A is incorrect because liability may be imposed if Titleco’s lack of awareness of the right-of-way resulted from its failure to act reasonably. Since the right-of-way deed from the owner of Westacre to Johnson Chemical Company was properly recorded before any of the grants of Westacre took place, it was not outside the chain of title, and B is incorrect. D is incorrect because the liability of Titleco does not depend on covenants made by Sofield.
This is so even though the purchaser relied on assurances in addition to the covenant, and even though the grantor was unaware of the existence of the encumbrance at the time he executed the covenant. A and B are, therefore, incorrect. D is incorrect because there is no indication that Sofield failed to act reasonably (i.e., was “negligent”).