§ 1381.Transactions Conclusive Against Everyone Except Purchaser Or Encumbrancer For Valuable Consideration

Buyers dealing with the state need to know a completed transaction will stick, and Section 1381 gives them that assurance. All sales, leases, or other transactions the Controller enters into under this chapter are conclusive against everyone, meaning no later claimant can undo the transaction after the fact.

The section carves out a single, narrow exception. A purchaser or encumbrancer who acquires title or an interest in good faith, for valuable consideration, through a written instrument that gets recorded first, can prevail over a competing claim to the same property. That exception protects an innocent later buyer who relied on the public record, while the general conclusiveness rule protects the Controller's original transaction from being unwound by someone who shows up afterward.