Oregon 30-Hour Real Estate Law Practice Test

What is the benefit to the grantee of having the deed recorded?

1. It simplifies the selling process

2. It prevents future liens on the property

3. It puts the public on notice regarding ownership

4. It guarantees the title is clear

The correct answer is: It puts the public on notice regarding ownership

The benefit to the grantee of having the deed recorded is that it puts the public on notice regarding ownership. When a deed is recorded, it becomes part of the public record, allowing anyone to verify who owns a particular piece of property. This public notice is crucial, as it helps to prevent disputes regarding ownership. If others are aware of the grantee's ownership through the recorded deed, it reduces the risk of subsequent claims or encumbrances that could arise from unrecorded interests, thereby enhancing the security of the title. Recording also establishes a timeline for ownership and can provide a layer of protection against claims made by third parties, as it demonstrates the grantee's interest in the property. While it may also facilitate future transactions by providing clear proof of ownership, the primary function and significance of the recording process is to inform the public about property ownership. This aspect is vital to maintaining an orderly system of property rights and helps in ensuring transparency in real estate transactions.