What happens to a buyer’s interest if they fail to record the deed to their new house?

When a buyer fails to record the deed to their new house, that buyer's interest in the property is not fully protected against third parties. Recording a deed serves as public notice of the property transfer and establishes the buyer's legal rights to the property. If the deed is not recorded, the buyer may still have a valid ownership interest based on the sale agreement, but that interest may be challenged by subsequent purchasers or creditors who are unaware of the buyer's rights due to the lack of recording.

For instance, if another buyer records their deed for the same property after the original buyer but before the deed is recorded, the second buyer may take precedence based on the principle of "first in time, first in right." This can potentially lead to complications or loss of the property for the buyer who did not record their deed, emphasizing the importance of official recording in establishing and protecting property rights.