If S forges G's name on a deed and G discovers it before the deed is recorded, who ultimately owns the property?

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Study for the Real Estate Transactions Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare to excel in your exam!

In this scenario, G ultimately owns the property because S's act of forging G’s name on the deed is invalid. A deed must be executed with the genuine consent of the grantor, which in this case is G. Since S forged G’s name, the deed does not legally transfer ownership from G to S.

Moreover, because G discovered the forgery before the deed was recorded, G retains their ownership. Recording a deed is important for providing public notice of ownership, but it does not matter in this situation since the deed is fraudulent from the outset. G's awareness of the forgery means that they have not authorized any transfer of their property, solidifying their ownership right.

The concept of a bona fide purchaser (BFP) does not apply here as there hasn’t been a legitimate transaction; thus, a BFP who might have bought the property from S after the forgery would not have any claim against G. The fact that the deed was not recorded before G discovered the forgery further reinforces G's claim to ownership, as the fraudulent document has no legal effect.

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