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A New Jersey title company discovers that a prior deed in the chain of title was never acknowledged before a notary public, although it was signed by the grantor and delivered to the grantee. Under New Jersey law, which of the following statements is MOST accurate?

Correct Answer

D) The unacknowledged deed is valid between the parties but cannot be recorded and does not provide constructive notice to third parties

Under New Jersey law, acknowledgment (notarization) is required for a deed to be eligible for recording in the county clerk's office, but it is not required for the deed to be valid and effective between the grantor and grantee. An unacknowledged deed that is signed and delivered is valid as between the original parties. However, because it cannot be recorded, it does not provide constructive notice to subsequent purchasers or lienholders, which puts the grantee at risk of losing priority to a later bona fide purchaser who records.

Answer Options
A
The unacknowledged deed automatically becomes void after five years under New Jersey's recording act
B
The unacknowledged deed is void and has no legal effect between the grantor and grantee
C
The unacknowledged deed is valid and fully effective as if it had been acknowledged, because acknowledgment is never required in New Jersey
D
The unacknowledged deed is valid between the parties but cannot be recorded and does not provide constructive notice to third parties

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Deep Analysis of This Property Ownership Question

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Background Knowledge for Property Ownership

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Related Topics & Key Terms

Key Terms:

deed_typesacknowledgmentrecordingconstructive_noticedeed_validity

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