What term describes a situation in real estate where properties are frequently transferred without proper notification to the local authorities?

The term that describes a situation where properties are frequently transferred without proper notification to local authorities is referred to as unrecorded transfers. In real estate, most property transfers are required to be recorded in a public registry to provide legal notice to all interested parties about ownership. When these transfers happen without being documented, it can lead to confusion, disputes over ownership, and challenges in proving rightful ownership.

Unrecorded transfers can create challenges for future buyers and lenders, as they may not be aware of the existing claims on the property. This situation usually arises from informal transactions or systematic avoidance of regulatory requirements. The importance of recording a property transfer cannot be overstated, as it safeguards property rights, helps maintain clear titles, and provides transparency in real estate transactions.

While other terms like foreclosure and title fraud pertain to specific legal issues in real estate, and clouded title refers to a title that has issues preventing clear ownership, none of these terms directly address the lack of notification in property transfers as unrecorded transfers do.