What is the primary purpose of the recording system in real estate?

The primary purpose of the recording system in real estate is indeed to show the sequence of transfers or actions affecting property. This system is crucial because it creates a public record that documents ownership and the history of property transactions. When a property is bought, sold, or encumbered by a mortgage, these actions are recorded in a government office, and this record provides legal evidence of property rights.

This transparency helps prevent disputes over property ownership, as anyone can check the public records to trace the lineage of the property and confirm its current ownership and any encumbrances like liens or mortgages. By maintaining an accurate and chronological account of property transactions, the recording system serves to protect property rights and establish a clear chain of title, which is essential in real estate transactions.

The other choices relate to different aspects of real estate but do not capture the fundamental objective of the recording system. For instance, providing insurance for property owners pertains to title insurance rather than the recording systems themselves, while determining property value often involves appraisals and market assessments, not solely the recording of historical data. Establishing rental agreements is a matter of contract between landlords and tenants and is separate from the primary function of the recording of real estate transactions.