What is the status of a deed when it is not recorded according to Arizona Revised Statutes?

In Arizona, a deed that is not recorded remains valid as a legal instrument, meaning that it can still transfer ownership of the property between the parties involved. However, the key point is that its validity in terms of protecting the interests of the parties is at risk because it could be challenged by subsequently recorded interests.

When a deed is recorded, it becomes part of the public record, providing notice to the world of the ownership transfer. If someone records their interest in the same property after your unrecorded deed, that subsequent interest may take precedence over your deed. This is particularly important for ensuring that other buyers or creditors are aware of the existing claim to the property.

Thus, while the unrecorded deed is valid and creates a legally recognized transfer of ownership, it puts the holder at a disadvantage because they could lose their claim if another party records their deed subsequently. The lack of recording does not invalidate the deed itself, but it does expose the owner to risks regarding the priority of claims, which is a fundamental aspect of real estate law.