Dan J. Harkey

Educator & Private Money Lending Consultant

Lien Priority-Recording Documents And Instrruments

How The System Of Public Notice Recordation Works

by Dan J. Harkey

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Summary:

As a key player in property transactions, your understanding of instrument recording is crucial.  This process, which is of utmost importance throughout the U.S. and its territories, follows a similar pattern and is vital in property transactions.

Instrument recordation, a process conducted at the municipal level, is a public affair. This public nature of the process, where a written, recorded instrument becomes a matter of public record, ensures the highest levels of transparency and accountability in property transactions, providing you with the confidence that the process is open and fair.

Municipalities may be known by similar names, such as the County Recorder’s office, County Registrar’s office, or Bureau of Conveyances.  These entities are responsible for maintaining public records of property transactions and ensuring their transparency and accountability.

You should be able to help navigate property transactions by understanding that recording clouds a property’s title and must be addressed as part of pending transactions.  This knowledge is crucial and gives you a competitive edge in property transactions.

Article:

Dozens of instruments may be recorded for various purposes, such as deeds, mortgages, liens, and easements.  Each of these documents plays a unique and significant role in property transactions. The similarity, however, is that the record serves as a method of providing public notice, whereby the instrument becomes a cloud on the title through the recording.

https://www.placer.ca.gov/8282/Definitions-of-Commonly-Recorded-Documens

https://www.nevadacountyca.gov/299/Most-Common-Recorded-Document-Definition

https://sonomacounty.ca.gov/administrative-support-and-fiscal-services/clerk-recorder-assessor-registrar-of-voters/clerk-recorder/frequently-asked-questions/definitions-of-commonly-recorded-documents

Why is this important?

A recorded document clouds the title and provides public notice in all circumstances.  A search of public records will reflect an established paper trail to determine the chain of title and who has an interest in the property.  These interests are not just economic but also contractual agreements, such as leases, easements, or covenants, that limit or extend the use of the property, reflecting the complexities and nuances in property transactions.