A California buyer records a grant deed on Monday, March 10, at 10:00 AM. On the same day, a judgment creditor of the seller records an abstract of judgment at 2:00 PM. Under California recording law, which interest has priority?
Correct Answer
B) The buyer's grant deed, because California records documents in the order received, and the grant deed was recorded first on the same day
In California, documents are recorded in the order they are received by the county recorder. Under Government Code §27321, the recorder assigns sequential document numbers and records the date and time of receipt. Since the grant deed was recorded at 10:00 AM before the abstract of judgment at 2:00 PM, the buyer's ownership interest has priority over the judgment lien.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A deed is a written legal document that conveys (transfers) ownership of real property from one party to another. It must be delivered to and accepted by the grantee to be effective.
For a deed to be valid, it must contain several essential elements including a competent grantor, identifiable grantee, consideration, legal description, granting clause, signature of the grantor, and delivery and acceptance.
Escrow is an arrangement in which a neutral third party holds documents, funds, or other items on behalf of the buyer and seller until all conditions of the transaction are met.
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- → A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
- → A buyer drives past the property and sees someone other than the seller living there and maintaining the yard. This observation should put the buyer on what type of notice?
- → In a covered purchase transaction, the borrower receives a final form showing the loan terms, cash to close, and settlement charges shortly before consummation. What form is this?
- → Along with the signed offer, Quinn Brooks delivers a check to demonstrate serious intent to complete the transaction if the offer is accepted. What is this deposit called?
- → On a settlement statement, the buyer's earnest money reduces the remaining cash needed to close. How is that item characterized?
- → On a settlement statement, an item increases the buyer's amount due at closing. How is that item characterized?
- → On the seller's settlement statement, the purchase price of $400,000 appears as what?
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