While real estate instruments do not always have to be filed of record to be effective, proper recording with the county clerk provides important legal protections that should not be overlooked.
Many people assume that real estate documents must be recorded with the county clerk to be valid and enforceable; however, at least between the parties to the instrument, a fully executed agreement is binding among the parties, whether or not it is filed of record. However, recording the agreement does put the rest of the world on constructive notice of the agreement, and gives the parties to the agreement priority over any claim or interest filed of record after the original agreement. Therefore, if a document is not filed of record, then subsequent interest holders could gain superiority over the original parties; only by filing as soon as possible after execution will protect the parties from subsequent claims.
This Title Tuesday Tip is provided courtesy of Rattikin & Rattikin, LLP, attorneys and counsel for Rattikin Title Company and is not a legal representation or statement of law. Please confer with your legal counsel for any and all legal questions.