New Jersey Real Estate License 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 because it has not been filed with the appropriate governmental office, making it invisible to the public.

Option A is incorrect; a deed must name the grantee to be valid. Option B is also false; a legal description is essential for identifying the property being transferred. Option D misrepresents the nature of a deed; it remains valid between the parties even if unrecorded, but lacks public notice. Thus, while unrecorded deeds are valid, they fail to establish public awareness of ownership.

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