Real property was sold but no cautionary note was recorded. The seller sold the real property again to a different purchaser.
The court held that a hard-line approach should be taken against one who fails to record a cautionary note. Recording a cautionary note is a measure with minimal cost that can prevent contrary transactions on the same land. However, if the second purchaser executed the transaction with bad faith or with awareness of the first transaction, the first transaction will prevail despite the failure to record a cautionary note. In the present case the first purchaser failed to record the transaction for decades and did not record a cautionary note. The second purchaser knew nothing about the first transaction and acted in bona fide while carrying out the transaction, therefore the second transaction prevails.