Question 61

An unrecorded deed does not give constructive notice.

An unrecorded deed fails to provide constructive notice to subsequent purchasers or creditors, meaning that they are not legally bound to acknowledge the existence of the deed unless it has been recorded.

A) need not name grantee

This statement is incorrect because a deed must identify the grantee to be valid. Naming the grantee is essential for establishing who holds the property rights.

B) need not contain legal description

This option is also incorrect. A legal description is necessary for a deed to be valid, as it specifies the exact location and boundaries of the property, which is crucial for proper identification.

C) does not give constructive notice

This statement is true. An unrecorded deed does not provide constructive notice to third parties. Without recording, there is no public record of the transfer, leaving subsequent purchasers unaware of the prior claim.

D) not valid until recorded

This statement is misleading. While recording a deed is important for giving notice, an unrecorded deed can still be valid between the parties involved. However, it lacks the legal protection that recording provides against claims from third parties.

Conclusion

The correct answer is that an unrecorded deed does not give constructive notice, which is critical for protecting the interests of subsequent purchasers. Options A, B, and D fail to recognize the necessary elements of a valid deed, while option C accurately highlights the primary consequence of not recording a deed, distinguishing it from the other choices.