Ulysses Bought Whiteacre from Gordon but Never Recorded the Deed

question 4

Essay

Ulysses bought Whiteacre from Gordon but never recorded the deed. Gordon stayed on the property as a tenant for three (3) years. Near the end of the three (3) years, Gordon learned that Ulysses had never recorded the deed. Gordon advertised Whiteacre for sale and Cheryl negotiated with Gordon thinking that Gordon was the owner. Finally, Cheryl checked the records at the recording office and, finding no reason to question Gordon's ownership of the property, purchased Whiteacre from Gordon. Cheryl recorded the deed and Gordon fled with the purchase money. Meanwhile, Ulysses had failed to pay the real estate taxes on Whiteacre for the three (3) years in question thinking it was the responsibility of Gordon, the tenant. Ultimately, Cheryl and Ulysses disputed over the ownership of the property. Decide the case between Cheryl and Ulysses. Also decide whether Ulysses is responsible for the three (3) years of real estate taxes assessed while Gordon occupied the property as a tenant.

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Definitions:

Cash Basis

An accounting method in which revenues and expenses are recorded only when cash is received or paid, rather than when they are incurred.

Revenue Recognized

Income that a company has earned during a period but has not yet received payment for, adhering to the revenue recognition principle.

Money Received

The sum of cash or cash equivalents that an entity acquires from various sources, including sales or funding.

Revenue

The sum of money earned from the sale of products or services central to the business's main activities.