Escrow & Title
When a deed is recorded in Iowa, it provides:
AActual notice to all parties who have physically inspected the property
BConstructive notice to the world of the ownership interest✓ Correct
CGuarantee that the title is free of all defects
DAutomatic title insurance for the new owner
Explanation
Recording a deed in Iowa's public records provides constructive notice to the world — meaning everyone is legally presumed to know about the recorded interest whether or not they have personally seen or read the document.
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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).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
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