If a certificate is third party and not recorded within 3 months, its status is?

• A. Void
• B. Valid
• C. Enforceable
• D. Cancelled

Answer: (A)

Timing for recording a third-party certificate is the key point. If a certificate issued to a third party must be recorded within three months and that recording doesn't happen, the instrument loses its binding effect and is considered void. In other words, it cannot be used to claim or enforce anything in the tax system. The terms valid or enforceable would require the recording to have occurred and the certificate to be in good standing, while cancelled would imply a deliberate termination rather than a missed recording. So missing the recording window means the certificate is void by default.