What Happens If You Fail to Record a Property Deed in Maryland?

Some people mistakenly believe that signing and notarizing a property deed is sufficient for transferring ownership. In Maryland, however, failing to record a property deed can create significant legal and financial complications, some of which may not emerge until years later.

First of all, Maryland is a race–notice state, which means the first person to record a deed, without knowing about an earlier unrecorded one, is given priority. If the seller later transfers the same property to someone else who records the deed, that buyer could legally own the property instead of you.

More commonly, an unrecorded deed can leave the property exposed to the grantor’s creditors. If a deed remains unrecorded with land records, Maryland law treats the previous owner as still owning the property, potentially allowing judgments, liens, and even bankruptcy claims to attach to the property.

Issues can also emerge during probate. If a property owner dies and the deed was never recorded, the property will usually be pulled into the estate administration, even if the owner signed a new deed transferring ownership while still alive. Families often find out too late that the transfer is not legally recognized.

Unrecorded deeds also create issues when trying to sell or refinance the property. Title companies will not proceed if the deed isn’t recorded and indexed with land records. And title insurance may not cover issues arising from an unrecorded transfer.

If you believe you may have an unrecorded deed or inherited property without a proper transfer, it’s best to consult an experienced real estate attorney. For a free, confidential consultation to discuss property deeds, contact Maryland real estate attorney Stephen J. Reichert at 410-299-4959 or sreichert@reichertlegal.com.

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