California Real Estate Practice Exam

By recording a deed with the County Recorder's Office, one:

1. Establishes precedence over subsequently recorded instruments

2. Gives actual notice of interest in real property

3. Makes it possible for the new owner to be able to sell the property

4. Validates the document so recorded

The correct answer is: Establishes precedence over subsequently recorded instruments

Recording a deed with the County Recorder's Office primarily serves to establish precedence over subsequent recorded instruments. This means that once a deed is recorded, it puts the public on notice of the owner's interest in the property. Any subsequent buyers or lienholders must acknowledge this recorded information, which helps ensure that the first recorded deed has priority over later claims. Though options such as providing actual notice or facilitating a new owner's ability to sell property are important aspects of property transactions, they are not the primary function of recording a deed. Recording helps to hierarchically secure the interest of the owner in a way that upholds their rights against any future claims or interests in the property. The act of validation is also present, but it is the establishment of priority that is most critical because it directly affects the legal standing of property ownership in relation to other claims.