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A deed is signed but not recorded. Which statement is TRUE?

Rationale

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

A signed but unrecorded deed is not accessible to the public, meaning that it does not provide constructive notice to subsequent purchasers or creditors. Constructive notice is established through public records, and without recording, the deed lacks the necessary visibility to protect the rights of the parties involved.

A (need not name grantee) YOUR ANSWER

While it is possible for a deed to be valid without naming a grantee, this is not a true statement regarding the status of an unrecorded deed. Generally, a deed should identify the grantee to be enforceable. The naming of the grantee is a critical element for the deed's validity and its ability to convey property rights.

B (need not contain legal description) YOUR ANSWER

A valid deed must contain a legal description of the property being conveyed to ensure clarity about what is being transferred. An unrecorded deed lacking a legal description may not effectively convey title, thus limiting its enforceability. Therefore, this statement is incorrect in relation to the status of the deed.

D (not valid until recorded) YOUR ANSWER

A deed is valid when executed (signed by the parties), regardless of whether it is recorded. However, recording is necessary for the deed to provide public notice and protect against claims by third parties. Hence, while recording enhances the deed's effectiveness, it is not a prerequisite for validity.

Conclusion

In summary, while a signed deed remains valid upon execution, it does not provide constructive notice until it is recorded. This distinction is crucial, as it affects the rights of both the grantor and grantee, especially concerning third-party claims. Understanding these nuances helps in navigating property transactions and protecting ownership rights effectively.

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