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Pass California

Transfer of Property, 8% of the examination

Recording

Entering a document in the county public record, giving constructive notice and establishing priority.

Recording does not validate an invalid document, does not itself transfer anything, and offers no guarantee of clear title. California operates a race-notice system, so a later purchaser who takes in good faith, for value and without notice, and records first, prevails. Possession by someone other than the seller is itself constructive notice and imposes a duty to inquire.

See also

Grant deedThe standard California deed, carrying two implied warranties.Title insuranceAn indemnity policy protecting against loss from defects in title.

See it in a question

One question from Transfer of Property, so the term lands in the context the exam uses it in.

Transfer of Property ยท 8%Escrow

What is the essential function of an escrow in a California transaction?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.

Where this is tested

Transfer of PropertyThe smallest area. Title insurance, deeds, escrow, tax aspects, and transfer under court supervision.8%Practise Transfer of Property16 questions on this area, every option explained.Practice

Other terms in this area