When a deed, mortgage, or other document affecting real property is recorded, it becomes part of the public record and provides constructive notice to anyone who might later acquire an interest in the property. Recording is not required for a document to be valid between the original parties, but it is essential to protect against third-party claims.
John sells his property to Mary on Monday but Mary does not record her deed. On Wednesday, John fraudulently sells the same property to Tom, who has no knowledge of the prior sale. Tom immediately records his deed. Under a race-notice statute, Tom's recorded deed prevails because he purchased in good faith, without notice, and recorded first.
Recording provides CONSTRUCTIVE notice (legal presumption everyone knows). An unrecorded deed is valid between the original parties but may lose to a subsequent good-faith purchaser. Know the three types of recording statutes: race (first to record wins), notice (last good-faith purchaser wins), and race-notice (good-faith purchaser who records first wins).
Related Terms
Related Concepts
A deed is a written legal document that conveys (transfers) ownership of real property from one party to another. It must be delivered to and accepted by the grantee to be effective.
A general warranty deed provides the greatest protection to the grantee by guaranteeing that the grantor holds clear title and has the right to sell the property. It includes covenants that protect against all defects in title, even those arising before the grantor owned the property.
A special warranty deed guarantees that the grantor has not caused any title defects during their period of ownership, but does not warrant against defects that existed before the grantor acquired the property.
A quitclaim deed transfers whatever interest the grantor may have in a property without making any warranties or guarantees about the quality of title. It offers the least protection to the grantee.
A bargain and sale deed implies that the grantor holds title and possession of the property but does not include warranties against encumbrances or title defects.
Frequently Asked Questions
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