Who bears the risk if the recorder failed to record a deed?

The grantee bears the risk if the recorder fails to record a deed. This is primarily because the recording of a deed serves as a public notice of ownership and establishes priorities among competing claims to the property. When a deed is recorded, it ensures that future buyers or lenders have access to important information about property ownership and any encumbrances.

If the deed is not recorded, the grantee may face significant issues, such as losing the property to a subsequent purchaser who may claim a superior interest in the property based on their recording of a later deed. The risk and potential consequences associated with an unrecorded deed rest with the grantee, who has the responsibility to ensure that their interest is documented properly in public records.

Understanding this concept highlights the importance of recording deeds in real estate transactions, as it protects the rights of the grantee and provides transparency in property ownership. This principle underscores the necessity for property buyers to take proactive steps in ensuring that their deeds are recorded to secure their interest in the property.