Question 37

A deed signed but not recorded does not give constructive notice.

A deed that is signed but not recorded does not provide constructive notice to subsequent purchasers or creditors. This means that the deed is not effective against third parties who are unaware of its existence.

A) need not name grantee

This option is incorrect because a deed must name a grantee to be valid. Naming the grantee is a fundamental requirement for transferring property ownership, regardless of whether the deed is recorded or not.

B) need not contain legal description

This choice is also incorrect. A valid deed must contain a legal description of the property being conveyed. Without this description, the deed cannot clearly identify the property being transferred, which is essential for a valid transfer of ownership.

C) does not give constructive notice

This statement is correct. A deed that is executed but not recorded does not provide constructive notice, meaning that it cannot be used to inform third parties of the ownership transfer. Thus, subsequent buyers or creditors may not be bound by the terms of the unrecorded deed.

D) not valid until recorded

This option is misleading. A deed is valid upon signing, but its enforceability against third parties is contingent upon recording. Therefore, while the deed itself is valid, it does not protect the grantee's rights from claims of other parties unless it is recorded.

Conclusion

Option C is definitively correct as it accurately describes the implications of a deed that is signed but not recorded, specifically regarding the lack of constructive notice. Other options fail because they either misrepresent essential requirements of a deed or misunderstand the nature of validity and notice in property law. Understanding these principles is crucial for anyone dealing with property transactions.