A Colorado real estate broker is advising a client who just purchased a property and received a warranty deed at closing. The client asks whether they need to record the deed, since they already have physical possession of the property and the deed itself. Which response best reflects Colorado recording law?
Correct Answer
A) Recording is optional because the deed is valid between the parties upon delivery, but failure to record exposes the buyer to risk from subsequent purchasers or creditors
Under Colorado law, a deed is valid between the grantor and grantee upon proper delivery and acceptance, regardless of recording. However, C.R.S. § 38-35-109 makes recording critical for protection against third parties. An unrecorded deed is ineffective against a subsequent bona fide purchaser for value who records first without notice of the prior conveyance. The broker should strongly advise the client to record immediately to protect their title against subsequent claims, liens, or competing conveyances.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.
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