Escrow & Title
In Iowa, recording a deed with the county recorder establishes:
AActual notice to all subsequent purchasers and creditors
BConstructive notice to all subsequent purchasers and creditors✓ Correct
CActual notice only to adjacent property owners
DPriority only over other recorded deeds
Explanation
Recording a deed provides constructive notice—the legal presumption that everyone is aware of the recorded document. This protects against subsequent bona fide purchasers claiming they had no notice.
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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).
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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