Property Ownership
Under Alabama recording acts, a deed that is recorded:
AOnly protects the original parties to the deed
BProvides constructive notice to all subsequent purchasers and creditors✓ Correct
CRequires AREC approval to be valid
DMust be witnessed by the real estate broker to be recorded
Explanation
Recording a deed provides constructive notice — the legal presumption that all subsequent purchasers and creditors had knowledge of the recorded instrument.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
EasementA non-possessory right to use another person's land for a specific purpose.
State-Specific Concepts
Recording RequirementsAREC Regulation
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