Escrow & TitleIntermediateCalifornia Exam

Recording a deed provides:

AActual notice only to the immediate parties to the transaction
BConstructive notice to the world of the recorded instrumentCorrect
CGuarantees that the title is free of all defects
DProtection only against future encumbrances, not past ones

Why Constructive notice to the world of the recorded instrument Is Correct

Answer B: Constructive notice to the world of the recorded instrument

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.

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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