Escrow & Title
Recording a deed provides:
AActual notice only to the immediate parties to the transaction
BConstructive notice to the world of the recorded instrument✓ Correct
CGuarantees that the title is free of all defects
DProtection only against future encumbrances, not past ones
Explanation
Recording a deed in the county recorder's office provides constructive notice — meaning the law presumes that everyone has knowledge of the recorded instrument, even if they haven't actually read it. This protects the grantee against subsequent purchasers and encumbrancers who might otherwise claim they had no knowledge of the prior conveyance.
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