Chronological Order

The term "chain of title" refers to a chronological order. To be considered "properly" recorded, the instrument or document must be properly placed in the chain of title, or chronological order.

For example, Cicero obtains a mortgage loan from ABC Bank to buy a piece of property. However, ABC Bank jumps the gun and files the mortgage on April 1, 2001, even though Cicero doesn't actually conclude his purchase until April 3, 2001. Because Cicero did not own the property on April 1—and therefore did not have authority to have instruments recorded on it—ABC Bank's April 1 recording is invalid. Don't worry though, ABC Bank simply works with Cicero to correct the error and re-record the mortgage deed.

Some liens, such as real estate taxes, special assessments and inheritance tax liens, do not need to be recorded to remain binding.

Real Estate 101

Real Estate 101

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