Which statement regarding recordation is NOT correct?

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!

The statement regarding recordation that is not correct is that recording a deed imparts actual notice to all future purchasers. When a deed is recorded, it provides what is known as constructive notice, rather than actual notice. Constructive notice means that the information is publicly accessible and can be discovered through due diligence, but it does not necessarily mean that all future purchasers are actually aware of that information.

Actual notice, on the other hand, refers to the situation where a person is directly informed about a fact. Since not all future purchasers will investigate public records, they may not have actual knowledge of prior claims or interests even if the deed has been recorded. This distinction is important in real estate transactions because it affects the rights of parties involved in the ownership of property.

The other statements accurately describe the benefits and functions of recordation. Recording a deed does protect against prior claims, ensures public notice of property ownership, and plays a crucial role in establishing a clear chain of title for the property.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy