Escrow & TitleIntermediateAlabama Exam

A buyer who records their deed promptly after closing protects themselves from:

AFuture property tax increases, across most transactions
BClaims by subsequent purchasers who record before themCorrect
CZoning changes
DEnvironmental liability

Why Claims by subsequent purchasers who record before them Is Correct

Answer B: Claims by subsequent purchasers who record before them

Recording a deed provides constructive notice and, under the race-notice recording acts in most states, protects the buyer from subsequent purchasers who might claim an interest in the property.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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