Legal Definitions - Recording statute

A recording statute is a law that requires certain documents, such as deeds and mortgages, to be recorded in a public registry. This helps establish a clear chain of title for a property and protects the rights of buyers and lenders.

For example, let's say John sells his house to Jane. If John had previously sold the same house to someone else and that sale was recorded, Jane would not have a valid claim to the property. However, if the recording statute was followed and John's previous sale was properly recorded, Jane would be protected as a bona fide purchaser.

Another example is when a lender provides a mortgage to a borrower. The mortgage must be recorded to establish the lender's lien on the property. This protects the lender's interest in the property and ensures that they will be paid if the borrower defaults on the loan.