Escrow & Title
Recording a deed in New Mexico protects the buyer primarily by:
AGuaranteeing the deed is free of all defects
BProviding constructive notice to the world of the buyer's ownership✓ Correct
CTransferring legal title from the seller
DCreating a lien on the property
Explanation
Recording a deed provides constructive notice to the public of the buyer's ownership interest, protecting the buyer against subsequent claims or transfers by the seller.
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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).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
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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