Title to property, especially real estate, that is not registered with the appropriate body. An unrecorded deed is valid, but there is no guarantee that it is authentic. As a result, some insurance companies refuse to provide coverage for properties with unrecorded deeds. See also Quitclaim deed.
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unrecorded deedsDeeds 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.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.