American Institute of Certified Planners (AICP) Practice Exam

The recording of a deed?

1. Passes title.

2. Guarantees ownership.

3. Raises a presumption of delivery.

4. Insures possession.

The correct answer is: Raises a presumption of delivery.

The recording of a deed primarily serves to provide public notice of the ownership and any encumbrances on a property, but its specific role includes raising a presumption of delivery. When a deed is recorded, it signifies that the grantor (the person transferring the property) has transferred their interest in the property to the grantee (the person receiving the property). Recording establishes a chain of title and helps maintain public confidence in property transactions. The presumption of delivery is crucial because it indicates that the grantor intended to convey the property, even if the physical transfer of the deed itself might not have occurred at that moment. This presumption helps protect the rights of the grantee and reinforces the legitimacy of the transaction in the eyes of third parties. While it is true that a recorded deed provides critical information regarding ownership, it does not guarantee ownership outright, nor does it ensure possession. These aspects often depend on other legal factors and conditions, such as the validity of the deed and the existence of any superior claims. Therefore, the main function of recording a deed aligns with raising the presumption of delivery, making this the correct understanding of its role in real estate transactions.