New Jersey Real Estate Exam Practice Question

Which of the following statements is true concerning an unrecorded deed?

Correct Answer: C

Rationale: An unrecorded deed does not provide constructive notice of ownership, meaning that third parties are not legally aware of the ownership transfer, which can lead to disputes.

Option A is incorrect; a deed must name the grantee to establish valid ownership transfer. Option B is also wrong; a legal description is essential for identifying the property in question. Option D misrepresents the validity of the deed; while recording is necessary for public notice, an unrecorded deed can still be valid between the parties involved. Thus, the lack of constructive notice is the key distinction for unrecorded deeds.

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