Maine Real Estate License Practice Exam

What is the primary purpose of recording a deed in the county registry of deeds?

1. Protect the seller against any future title problems

2. Remove all prior liens and encumbrances

3. Create marketable title through constructive notice

4. Public notification of ownership of a property

The correct answer is: Public notification of ownership of a property

The primary purpose of recording a deed in the county registry of deeds is to provide public notification of ownership of a property. Recording the deed serves as an official document that establishes a chain of title, which is critical for determining who legally owns the property at any point in time. This public record allows anyone interested in the property, such as future buyers, lenders, and title searchers, to verify ownership and uncover any encumbrances or claims against the property. When a deed is recorded, it creates an accessible history of ownership, ensuring transparency in real estate transactions. By making this information accessible to the public, it promotes confidence in the real estate market, encourages accountability among property owners, and helps prevent disputes over property rights. The other options touch on aspects related to property ownership or title issues, but they do not adequately capture the primary function of recording a deed. While protecting against future title problems and removing prior liens may be outcomes of proper recordings, these are secondary to the fundamental goal of public notification of ownership, which is essential for maintaining organized property rights and facilitating real estate transactions.