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

This book makes it easy to not only buy a home, but figure out everything that you need to do, even get a loan. In simple and easy to understand language, it talks about where you should buy a home, what to look for in a home, how to find a home, how to get an agent, how to get a mortgage and more. This is a step by step process that you, a new home buyer, can use to purchase a home.

Get My Free Ebook


Post a comment