What may be a consequence of failing to record a preneed contract related to real estate?

Recording a preneed contract related to real estate is a crucial step in ensuring that the terms of the agreement are recognized and enforceable. When a contract is not recorded, it can lead to significant complications regarding the transfer of property.

One consequence of failing to record such a contract is that the transfer of property may be delayed. This delay can occur because parties interested in the property may not be aware of the existing preneed contract, potentially leading to disputes over ownership or the terms of the sale. If multiple parties claim a right to the property, the lack of a recorded contract can create confusion and necessitate legal intervention, thus prolonging the transfer process.

Recording the contract protects the interests of the involved parties by providing public notice of the agreement and ensuring that it is legally enforceable. This helps facilitate a smoother transaction and can prevent future legal disputes regarding the property. By ensuring the contract is recorded, parties can avoid unnecessary delays and complications in property transfer.