Maryland Home Improvement PSI Practice Exam

What risk is associated with not recording a deed?

1. Easements of record would become void

2. No risk if deed has been notarized

3. Delivery of a deed could be invalidated

4. Recorded deeds could take precedence

The correct answer is: Recorded deeds could take precedence

The risk associated with not recording a deed primarily relates to the protection of property rights and the priority of claims. When a deed is recorded, it serves as public notice of ownership, thereby establishing a chain of title that can be referenced by future buyers or creditors. Failure to record could open the door for complications concerning ownership. Not recording a deed can result in the possibility that, should another party record a deed for the same property after the original deed is not recorded, that second party could claim superior rights to the property. This potential for competing claims emphasizes the importance of recording deeds, as doing so publicly documents ownership and protects the rights of the individual who has made the purchase. In essence, while the non-recording of a deed does not invalidate the sale itself, it may expose the owner to risks such as conflicting claims or losing established rights to the property if another party subsequently records their claim.