Question 28

An unrecorded deed does not give constructive notice of ownership.

An unrecorded deed lacks the legal effect of providing constructive notice to third parties regarding the ownership of the property. This means that without being recorded, the deed does not serve to inform others of the grantee's rights.

A) It need not name the grantee

This statement is incorrect because even an unrecorded deed must name the grantee to convey ownership effectively. Without naming the grantee, the deed would be incomplete and potentially unenforceable.

B) It need not contain a legal description.

This option is also incorrect. A legal description is essential for a deed to identify the property being conveyed. Without it, the deed may lack clarity and could be challenged in terms of its validity.

C) It does not give constructive notice of ownership.

This statement is true. An unrecorded deed does not provide constructive notice, meaning that it does not inform other parties of the grantee's ownership rights. Therefore, third parties are not bound by the terms of an unrecorded deed.

D) It is not valid until it is recorded.

This statement is misleading. While recording a deed provides public notice and is important for protecting ownership rights against third parties, the deed itself is still valid between the parties involved even if it is not recorded. However, unrecorded deeds are at a disadvantage regarding public notice.

Conclusion

The correct answer is C, as it accurately reflects the legal implications of an unrecorded deed in terms of constructive notice. Options A and B are incorrect because they misrepresent the necessary components of a deed. Option D, while partially true, does not capture the essence of validity in the relationship between the parties involved. Thus, option C stands out as the only accurate statement regarding unrecorded deeds.