In the scenario where Brad sold his house to Jerry and then to George, who retains title to the property?

Prepare for the North Carolina Broker Reciprocal Exam. Sharpen your skills with flashcards and multiple-choice questions. Each question offers explanations to ensure clarity and understanding. Get ready to excel!

In this scenario, the key factor influencing who retains title to the property is the concept of recorded deeds and the importance of possession. When Brad originally sold his house to Jerry, Jerry would have received a deed transferring ownership. Once Jerry owned the property, he had the right to sell it, so when he sold it to George, he would have executed another deed transferring ownership to George.

However, for George to have clear title, the deed from Jerry to George must be recorded in the public records. If George's deed is recorded, he legally retains title to the property, regardless of Jerry's prior possession. It is essential to understand that recorded deeds protect the interests of the current owner in a property. In a case of competing claims, the person with the recorded deed typically has superior ownership rights.

In this scenario, George retains title due to the recorded deed, which is instrumental in establishing his ownership in the eyes of the law. If Jerry’s deed to George was properly recorded, then George holds the valid title.

The answer indicating that Jerry retains title due to prior possession is misleading because prior possession is not sufficient to establish ownership once a deed has been recorded transferring that ownership to another party. The chain of ownership is completed through recording, highlighting the

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