Question

A first trust deed can usually be distinguished from a second trust deed by the:

Selections

A. Heading of the recorded document

B. Information contained in the note

C. Recorder’s margin notation

D. Time and date of recordation

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Answer: D

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5 Keys Summary

• The priority of a trust deed (Deed of Trust), which determines whether it is a first or a subsequent (junior) lien, is primarily established by the order in which documents are entered into the public record.

• The distinguishing factor between a first trust deed and a second trust deed is the Time and date of recordation.

• The general rule for lien priority is “first to record, first in right,” meaning the lien recorded first in time typically holds the superior (first) position.

• When documents are recorded, they receive a unique instrument number; the one with the earlier time and smaller number is prioritized.

• Although the documents might mention their intended priority (e.g., in the heading or note), legal priority is only confirmed by the act of recording, which imparts constructive notice to all parties.

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