Escrow & Title
In Rhode Island, recording a deed in the land records serves to provide:
AActual notice only to parties who physically inspect the records
BConstructive notice to the world of the property transfer✓ Correct
CTitle insurance coverage to the new owner
DTax assessment to the new owner
Explanation
Recording a deed in the local land records provides constructive notice — legal notice to the world — of the ownership transfer. This protects the buyer against subsequent claims by third parties who might later claim an interest in the property.
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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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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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