Real estate waiver filing effect?

• A. Real estate waivers are not binding on third parties unless they are filed with county real estate records
• B. They are binding on third parties regardless
• C. They replace the need for UCC filings
• D. They require no signatures

Answer: (A)

Recording is what makes a real estate waiver binding on third parties. A waiver of lien or similar real property right is an agreement between the signatories, but to affect others who may later acquire or encumber the property, the waiver must be filed in the county's real estate records. This public filing provides constructive notice to title examiners, prospective buyers, and lenders, so they know the lien or claim has been waived. Without recording, a third party may not be bound by the waiver because they have no notice of it in the public record. UCC filings govern security interests in personal property, not real estate, so they do not replace real estate record filings. Signatures are needed to create the waiver itself, but recording is what gives it binding effect on others.