A broker in Kennebunk, Maine, is explaining mortgage lien priority to a buyer client who is purchasing a property that already has a first mortgage recorded. The buyer asks what determines the priority of a subsequently recorded mortgage lien in Maine. Which principle governs lien priority for recorded mortgage instruments in Maine?
Correct Answer
B) Priority is determined by the date and time of recording in the registry of deeds, with earlier recording taking priority
Maine follows the 'first in time, first in right' principle for lien priority, which is governed by the recording acts. The mortgage or lien that is recorded first in the county registry of deeds holds priority over subsequently recorded liens. This means a second mortgage recorded after a first mortgage is subordinate to the first, regardless of loan amount. This principle is critical in Maine's judicial foreclosure process, where lien priority determines the order in which creditors are paid from foreclosure sale proceeds.
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Related Topics & Key Terms
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Related Concepts
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