Recording

Recording, Title Insurance, and Escrow ## The Recording System Recording is the process of depositing original documents with the county recorder's office to create a permanent, public record of transactions affecting real property. California's recording system allows anyone to search public records to discover liens, encumbrances, deeds, and other interests affecting a parcel. Why record? - Recording provides constructive notice to all subsequent parties — they are legally deemed to know about any recorded instrument whether they actually checked or not - Recording protects against subsequent purchasers who may claim they had no notice of your interest - California's race-notice recording statute (Civil Code §1214) provides that a subsequent purchaser who pays value, records first, and takes without notice of a prior unrecorded transfer prevails over the prior unrecorded transferee What can be recorded: Deeds, deeds of trust, liens, mechanics' liens, lis pendens (notice of pending litigation), notices of default, easements, CC&Rs, and other instruments affecting title. Requirements for recording: - Document must be in proper form (typed, legible, proper margins) - Grantor's signature must be notarized (acknowledged before a notary) - Proper fees paid - Legal description must identify the property A deed is valid between the parties without recording. Recording is required only to protect against subsequent claimants. --- ## Escrow Escrow is a neutral depository arrangement where a third party (escrow holder) holds funds, documents, and instructions from both buyer and seller and carries out their mutual instructions upon satisfaction of agreed conditions. Escrow is an agent of both parties — a limited dual agent for the narrow purpose of carrying out the escrow instructions. The escrow holder owes equal duties to both buyer and seller.…