What is the primary purpose of recording a preneed contract related to real estate?

The primary purpose of recording a preneed contract related to real estate is to create a public record of the transaction. This public record serves multiple important functions. First, it provides a way to notify interested parties of the existence of the contract, which can prevent disputes regarding ownership and intentions regarding the property in the future. It also protects the rights of the parties involved by ensuring that the details of the contract are documented in a manner that can be accessed by the public, lending transparency to the transaction.

Recording also helps in establishing priority between competing claims to the property, ensuring that the terms of the preneed contract are honored even when the property changes hands later. Through public registration, the specifics of the contract become part of the official property records, safeguarding the interests of buyers and sellers alike. This contrasts with other potential outcomes described in the other choices, which, while relevant to real estate and contracts, do not capture the primary purpose of establishing a verifiable public record.