unrecorded deeds

unrecorded deeds

Deeds that are not recorded with the public official given responsibility for maintenance of real estate records.An unrecorded deed is perfectly legal and passes title from the seller (grantor) to the purchaser (grantee) just like a recorded deed.The problem occurs if there is some event after the transfer, such as the grantor's bankruptcy, grantor's sale or mortgage of the same property to another,or tax or judgment liens against the grantor.If the deed was not recorded,other parties may be able to successfully claim the property,including a bankruptcy trustee who may seize the property and sell it to satisfy the grantor's debts.