What legal action can be taken if a buyer fails to record a deed after closing?

The correct answer highlights the possibility of judgment liens applying if a buyer fails to record a deed after closing. When a buyer purchases property, they typically receive a deed that signifies their ownership. However, failing to record this deed with the appropriate county office may lead to various issues regarding the legal standing of their ownership.

If the deed is not recorded, there could be complications such as potential claims from creditors, which may lead to judgment liens being attached to the property. A judgment lien is a legal claim against the property that arises when a creditor wins a judgment against the owner. Since the deed hasn’t been recorded, other parties might still establish claims to the property, affecting the buyer's rights and interests.

This situation also means that should there be any disputes related to ownership, the buyer might find it challenging to prove their ownership without a recorded deed, thus allowing creditors and other claimants to assert their legal rights more easily.

In contrast, other options present incorrect interpretations of the consequences of not recording a deed. The transaction being void is not accurate since the transfer of property has still occurred; the deed simply isn’t public record. The seller claiming ownership isn't valid as the ownership has legally transferred to the buyer, regardless of recording. Finally, stating