Escrow & Title

In Hawaii, the 'recording' of a deed is important because:

AA. It creates the contract between buyer and seller
BB. It provides constructive notice of the transfer to the public and protects the new owner against future claims✓ Correct
CC. It is required to obtain a real estate license
DD. It guarantees the property is free of all defects

Explanation

Recording a deed gives constructive notice to the world of the ownership change, protecting the buyer against subsequent purchasers or creditors who might otherwise claim priority.

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