Rachel purchases a condominium unit in Baltimore City. The seller's attorney provides Rachel with a title search showing a clean chain of title. However, unknown to Rachel, a prior owner had granted a deed of trust to a private lender five years ago that was recorded in Frederick County rather than Baltimore City, where the property is located. The private lender now claims its lien is valid against Rachel. Under Maryland law, what is the most likely outcome?
Correct Answer
B) Rachel takes the property free of the lender's lien because recording in the wrong county does not provide constructive notice under Maryland law
Under Md. Code Ann., Real Prop. §§ 3-101 et seq., deeds and other instruments must be recorded in the land records of the county where the property is located to be effective as constructive notice. Recording a deed of trust in Frederick County for a property located in Baltimore City does not provide constructive notice to subsequent purchasers searching the Baltimore City land records. Since Rachel conducted a title search in the correct jurisdiction and found nothing, she had no notice of the lien. She takes the property free of the improperly recorded deed of trust.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
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.
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