Illinois Real Estate Practice Exam

A buyer bought a property and was given an unrecorded deed:

1. The deed should be recorded to provide constructive notice of her ownership

2. The buyer should keep the unrecorded deed safe

3. The seller remains the legal owner until the deed is recorded

4. The buyer should return the deed to the seller for recording

The correct answer is: The deed should be recorded to provide constructive notice of her ownership

The correct response highlights the importance of recording a deed to provide constructive notice of ownership. In real estate, recording a deed is a crucial step that protects the buyer's interests. Once a deed is recorded in the appropriate government office, it becomes part of the public record. This action offers legal protection to the buyer by establishing a clear chain of title and notifying any future purchasers or creditors of the buyer’s ownership. Without recording, the buyer's ownership is not publicly acknowledged, which could lead to disputes regarding ownership rights. While keeping the unrecorded deed safe is certainly wise, it does not confer the legal protections that recording provides. The statement about the seller remaining the legal owner until the deed is recorded is misleading; the buyer is the owner from the moment the deed is signed, but they may face challenges regarding that ownership if it's not recorded. Finally, returning the deed to the seller for recording is unnecessary; the buyer can directly record the deed themselves. Thus, the most appropriate choice emphasizes the necessity of recording the deed.