Oregon 30-Hour Real Estate Law Practice Test

What is the best method for Jericho to ensure his interest in the property being sold by Cheng?

1. Get a loan approval

2. Sign a purchase agreement

3. Record the deed in his name

4. Obtain title insurance

The correct answer is: Record the deed in his name

To ensure his interest in the property being sold by Cheng, recording the deed in his name is the best method because it establishes legal ownership and provides public notice of that ownership. When a deed is recorded, it becomes part of the public record, thereby protecting Jericho's interest against potential claims from subsequent buyers or creditors. This process not only solidifies his ownership rights but also serves as proof of ownership should any disputes arise regarding the property in the future. While obtaining a loan approval and signing a purchase agreement are important steps in the purchasing process, they do not confer ownership or establish title to the property. They are preliminary actions that facilitate the buying process but do not provide Jericho with the security of ownership. Obtaining title insurance is also a prudent measure as it protects against defects in title; however, it does not itself establish ownership. The act of recording the deed is the definitive step in ensuring that Jericho's interest in the property is legally recognized and protected.