Linda and David borrowed $10,000 from the Smart Loan Company and executed a mortgage on their home to Smart Loan as security for the note. Smart Loan did not record the mortgage. If Linda and David sell their home to Sheila, and Sheila is not aware of the mortgage, then the mortgage is ________.

A. as valid for Sheila as it is to Linda and David
B. invalid for all parties
C. not valid for Sheila
D. valid for future creditors only


Answer: C

Business

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