§3305 When Transfer Is Made or Obligation Is Incurred

Summary

Defines when a transfer of property or an obligation counts as made for these rules. For real estate (not fixtures), a transfer counts once it is recorded or protected so a later good-faith buyer from the owner cannot get a better right than the person who got the property. For other property or for fixtures, it counts once it is protected so an ordinary creditor cannot get a court lien that beats the receiver’s right. If the law allows that protection but it wasn’t done before the start of the case, the transfer is treated as having happened just before the case began. If the law does not allow that protection, the transfer happens when it becomes effective between the owner and the recipient. A transfer does not count until the owner actually has rights in the item. An obligation is incurred when it takes effect. If it is an oral promise, it is incurred when the parties agree. If it is a written promise signed by the person who owes it, it is incurred when that writing is delivered to the person owed or for their benefit.