Does a contract to convey title to real property have to be recorded to be legal?

Full question:

Does a contract to convey title to real property have to be recorded to be legal?

Answer:

Recording is not required to make the contract enforceable, but it must be done so that the public will know of the purchasers rights to the property. The former owner is therefore prevented from making any other transaction regarding the property.

A person purchasing land from the last record title owner will take title free from any unrecorded claim to the land as long as the purchaser did not have notice or knowledge of this claim. The fact that such a document is recorded is notice to the world, even though a person did not know of the document because he failed to examine the public records.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Land contracts do not have to be recorded to be legally binding. However, recording the contract is advisable as it protects the buyer's interests and provides public notice of their rights. If the contract is not recorded, the seller might still sell the property to someone else without the buyer's knowledge, potentially leading to disputes.