August 1, 2019 - Mortgage recorded
January 3, 2020 - Lien recorded
January 31, 2020 - Owner conveys to buyer; buyer records
These transactions take place in a notice/race state. If the owner defaults on the mortgage, who gets the property?

Question

Quizplus · Accepted Answer

In a notice/race jurisdiction, the first to record the interest in the property has priority, provided they were not aware of any other claims when they recorded. Since the mortgage was recorded first (August 1, 2019), before the lien and the conveyance to the buyer, the mortgage company has priority. If the owner defaults on the mortgage, the mortgage company has the primary claim to the property.

August 1, 2019 - Mortgage Recorded