Reference no: EM133682511

Father owned a single-family residence that he lived in with his teenage son (Son). Father always planned to someday transfer title to Son. When Son graduated from high school, Father executed a valid deed to the residence and gave it to Son telling him, "If you go to college this fall, the house is yours. This place is too much work for me." Son took the deed, but did not record it. Instead Son put the deed in his dresser drawer.

The next day, Father and Son had an argument when Son stayed out all night at a high school graduation party. Son angrily told Father, "I'm not going to college, I'm going to buy a car and travel around the country." Son left the house and did not return. Father went into Son's room and removed the deed from the dresser drawer. Father then went next door to Nabor's house and offered to sell the house to Nabor. Nabor acted surprised and commented, "I thought you were going to save the house for your boy?" Father replied, "I was, but he's an ungrateful irresponsible punk. Besides, I need the cash to move to Florida." Two days later, Nabor paid Father fair market value for the house. Father executed a deed and conveyed the house to Nabor who promptly recorded the deed.

The following week, Son went out to purchase a car from Dealer. Dealer told Son that without a job or a co-signer, Son would not qualify for financing. After Son told Dealer that he owned a house, Dealer agreed to sell the car to Son in exchange for a mortgage. Son executed a mortgage adequately describing the house, handed it to Dealer and drove off with the car. Son has been travelling around the country for the past six months.

The jurisdiction in which the above-described events occurred has adopted the following statute: "No conveyance of real estate shall be valid against subsequent purchasers for valuable consideration without notice, unless the same be recorded."

What rights and interests do Son, Nabor and Dealer have in the residence? Discuss.