Real Estate Waiver: Which statement is true?

• A. Real estate waivers are not binding on third parties unless they are filed with county real estate records
• B. Real estate waivers are always binding on all third parties
• C. Real estate waivers replace the need for UCC filings
• D. Real estate waivers guarantee the lessor's rights without filings

Answer: (A)

The main idea here is that real estate interests rely on public notice to bind third parties. When a real estate waiver is recorded in the county records, it becomes part of the official public record, giving notice to future buyers, lenders, and others about the waived rights. If the waiver isn’t filed, third parties won’t be bound by it because they have no notice of it, and they can take title or an interest without being affected by the waiver. That’s why the true statement says waivers aren’t binding on third parties unless they are filed with county real estate records.

It’s helpful to contrast with UCC filings, which deal with personal property interests and do not affect real property. Therefore real estate waivers do not replace UCC filings. Also, without proper filing, a waiver does not guarantee the lessor’s rights. Proper recording is what provides enforceable notice against third parties.