National Real Estate Exam (PSI)Transfer of TitleMedium
A property owner discovers that someone forged her signature on a deed and then sold the property to an innocent third-party buyer who paid full value and had no knowledge of the forgery. What is the legal status of the title held by the innocent buyer?
- AThe buyer holds valid title once she records the deed in the public records
- BThe buyer holds no title at all because the forged deed is void from the start
- CThe buyer holds valid title because she paid fair value in good faith
- DThe buyer holds voidable title that the original owner must formally cancel
Show answer & explanationAnswer & explanation
Correct answer: B. The buyer holds no title at all because the forged deed is void from the start
A forged deed is void, not merely voidable, meaning it never legally transfers any interest, regardless of the buyer's good faith or the price paid. Because a void deed conveys nothing, the original owner retains title and can recover the property even from an innocent purchaser.
Why the other options are wrong
- A. Recording only provides notice of a claim; it cannot validate a deed that was void from inception.
- C. Good faith and fair value do not cure a forgery; forged deeds transfer no title.
- D. Voidable deeds (e.g., from fraud or incapacity) can be ratified or contested, but a forged deed is void outright, not voidable.
Forged Deed = Void Deed
A deed with a forged grantor signature is legally void and transfers no title, even to a bona fide purchaser for value.
- Void deeds convey nothing, ever
- Good faith purchase does not protect against a void deed
- Contrast with 'voidable' deeds, which remain effective until challenged
Memory trick: 'A forgery is a ghost deed — it was never really there.'