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Unrecorded Deed
An unrecorded deed is any official deed transferring tangible property without being recorded in local records. Even if a deed is not recorded at the proper offices, it is still a legal deed if executed by the property owner. Unrecorded deeds do pose legal questions, however. Judgments against the property may be held against the old owner since the formal deed was not recorded. Anyone who receives an unrecorded deed should hire an attorney to verify the sale was legal. Contesting it legally can clear up any legal questions. Insurance companies will often not cover property that has not been properly recorded. That means the property owner may pay premiums for years, but when it comes time to make a claim, if the insurance company finds the property is not recorded, they can refuse to cover the claim.