7. Which of the following statements is true concerning an unrecorded deed?

Answer: C

Explanation:

It does not give constructive notice of ownership.

An unrecorded deed does not provide constructive notice, meaning that it is not legally recognized to inform the public of the ownership of the property. Without recording, the deed is not enforceable against third parties.

A) It need not name the grantee.

This statement is incorrect because a deed must name the grantee to be valid. Naming the grantee is essential to establish who is entitled to the rights conveyed by the deed.

B) It need not contain a legal description.

This option is also incorrect as a legal description is a critical component of a deed. Without a legal description, the property being conveyed cannot be clearly identified, rendering the deed ineffective.

C) It does not give constructive notice of ownership.

This statement is correct because an unrecorded deed fails to provide constructive notice. Only recorded deeds are acknowledged as providing public notice of ownership, thereby protecting the rights of the grantee against claims from third parties.

D) It is not valid until it is recorded.

This statement is misleading. While an unrecorded deed may indeed be enforceable between the parties involved, it does not provide notice to the public. Therefore, the validity of the deed itself exists, but its enforceability against third parties is compromised without recording.

Conclusion

The correct answer is C, as it accurately reflects the concept that an unrecorded deed does not provide constructive notice of ownership, leaving the grantee's rights vulnerable to claims from others. Options A, B, and D fail because they misrepresent the essential characteristics of a valid deed, while B also highlights a crucial requirement that a deed must contain a legal description.