Recordation of a deed is required to give notice to third parties.

• A. True
• B. False
• C. Only for certain property types
• D. It is optional

Answer: (A)

Recording a deed creates constructive notice to the world about the transfer of property. The public record is the official source of evidence about who owns what, and it informs potential buyers, lenders, and others searching title of interests and claims. If a deed isn’t recorded, the grantor and grantee have a private agreement, but third parties are not presumed to know about the transfer and may act based on the unrecorded status of the title. Different states use various recording statutes (race, notice, or race-notice), but all aim to put the world on notice and to protect those who rely on the public record. So the statement that recording is required to give notice to third parties reflects how recording functions in real property transfers. The other options don’t fit because recording isn’t optional, isn’t limited to certain property types, and isn’t inherently false.