Does a real property title contract need 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 a contract to convey title to real property is not necessary for the contract to be enforceable. However, recording is important because it informs the public of the purchaser's rights to the property. This prevents the former owner from making other transactions regarding the property.

If someone buys land from the last recorded title owner, they will take title free from any unrecorded claims, provided they did not have notice or knowledge of those claims. Recording the document serves as notice to the world, even if someone did not know about it due to not checking 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.