Question

Which of the following statements is true about a Deed?

1) A Deed must be recorded to be valid
2) Unrecorded Deeds are valid but may not be binding on third parties
3) The Grantor is the Buyer of the Property
4) D. The Grantee must be of legal age

Answer 1

The true statement about a Deed is that unrecorded Deeds are valid but may not be binding on third parties, as recording is not required for validity between the transaction participants.

Step-by-step explanation:

The statement that is true about a Deed out of the options provided is that unrecorded Deeds are valid but may not be binding on third parties. Recording a Deed is an important step in the real estate transaction process, as it serves to give public notice of the transfer and protect the interest of the grantee against claims from third parties. However, the recording of a Deed is not essential for its validity between the parties involved in the transaction. The grantor is the party who transfers the property, not the buyer. Therefore, the buyer is referred to as the grantee, not the grantor. The age of the grantee (the buyer) does not automatically invalidate a Deed; requirements for legal capacity to hold property vary by jurisdiction.