Escrow & Title
A deed recorded in Alabama that is later determined to have been forged:
APasses valid title to the grantee
BIs void and passes no title — a forged deed is a nullity✓ Correct
CMay be validated by subsequent possession
DIs voidable only if challenged within 5 years
Explanation
A forged deed is void from the beginning (void ab initio) and cannot transfer title. This is one of the title defects that title insurance is designed to protect against.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Math Concepts
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