84. Which of the following statements is true concerning an unrecorded deed?
Answer: C
It does not give constructive notice of ownership.
An unrecorded deed does not provide constructive notice of ownership because it has not been officially documented in public records, making it difficult for third parties to ascertain the property rights associated with that deed.
A) It need not name the grantee.
This statement is incorrect because a deed must identify the grantee to be valid. The grantee is the individual or entity that receives the property, and this identification is essential for the transfer of ownership to be recognized.
B) It need not contain a legal description.
This statement is also incorrect. A valid deed must contain a legal description of the property being conveyed. This description is necessary to identify the specific piece of real estate being transferred and to avoid confusion or disputes regarding the property in question.
C) It does not give constructive notice of ownership.
This statement is true. An unrecorded deed does not give constructive notice to the public regarding the ownership of the property because it has not been filed in the public records. As a result, third parties cannot be expected to know about the ownership rights conveyed by that deed, making it less enforceable against subsequent purchasers or creditors.
D) It is not valid until it is recorded.
This statement is misleading. While an unrecorded deed may be valid between the parties involved, it does not provide protection or notice to third parties until it is recorded. Thus, the deed's validity exists, but its effectiveness in establishing ownership to outsiders is compromised without recording.
Conclusion
The assertion that an unrecorded deed does not give constructive notice of ownership is definitive because it underscores the importance of public record-keeping in real estate transactions. In contrast, the other options fail to recognize the fundamental requirements of a valid deed, such as naming the grantee and including a legal description, which are essential for the deed's legal standing and clarity in ownership.