A Massachusetts real estate licensee is representing a buyer purchasing a home in Lowell. During due diligence, the buyer's attorney discovers that the seller received the property as a gift five years ago and the donor's deed was never recorded. The seller's deed from the donor is currently unrecorded. The buyer's attorney advises that the buyer should proceed to closing and record the deed immediately. Which of the following BEST explains the legal risk this unrecorded donor's deed creates under Massachusetts law, and why prompt recording by the buyer is the correct strategy?
Correct Answer
A) The unrecorded donor's deed creates a gap in the chain of title that could allow a third party to claim priority if they record a competing interest before the buyer records
Under Massachusetts's race-notice statute (MGL Chapter 183), an unrecorded deed creates a gap in the chain of title. Because the donor's deed was never recorded, a title search would not reveal the transfer from donor to seller, creating a potential break in the chain. This means a third party who searches the title might not find the seller's ownership and could potentially assert a competing claim. Additionally, the unrecorded deed means the seller's interest is not protected against a subsequent claimant who records first without notice. The buyer's attorney is correct that prompt recording after closing is critical: once the buyer records, the buyer's interest is protected under the race-notice statute, and the buyer can also work with the attorney to record or ratify the prior deed to cure the chain of title gap.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
A freehold estate represents ownership of real property with an indefinite duration.
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