Mike owns a property in Fort Lauderdale with two mortgages. Under Florida's lien theory, how is the priority of these liens typically determined?
Correct Answer
C) By the order of recording in public records
Correct: Under Florida law, lien priority is generally determined by the 'first in time, first in right' principle based on recording order. Why not A: Loan amount does not determine priority. Why not B: Interest rates do not affect lien priority. Why not D: While lenders can agree to subordination, the default rule is recording order.
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Related Topics & Key Terms
Key Terms:
Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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