Recording a mortgage means filing it with the county office that keeps the public land records. Once it is on file, anyone who searches the property’s title can see that a debt is secured against it and who the lender is.
Why recording matters
A mortgage is generally binding between the two people who signed it, recorded or not. Recording is about everyone else.
Public notice
A recorded mortgage tells the world the property carries a debt, so a later buyer or lender cannot claim they did not know. An unrecorded one is invisible in a title search, and the owner could sell or borrow again with nobody aware of your claim.
Your place in line
When a property has more than one claim against it, the claims are ranked. The ranking is called lien priority, and it decides who is paid first if the property is sold or foreclosed. As a general rule, the earlier a lien is recorded, the higher it ranks. The exact rules and their exceptions differ from state to state. Property tax liens are the standard example of an exception, because they can rank ahead of a mortgage whatever the dates.
A seller who finances a sale and leaves the mortgage in a drawer is therefore taking a real risk: a lien recorded later by someone else could end up ahead of it. A real estate attorney can tell you where you stand under your state’s rules.
What happens at the county office
Every county keeps a public record of documents that affect real estate, including deeds, mortgages, deeds of trust, liens and releases. The office goes by different names, such as county recorder, register of deeds or county clerk.
- The signed and notarized mortgage or deed of trust is delivered to that office. When a title company or attorney handles the closing, they do this.
- A recording fee is paid. Some places also charge a tax on recorded mortgages.
- The office stamps the document with the date and time and gives it a reference, such as an instrument number or a book and page.
- It is indexed under the names of the parties so it can be found in a title search.
- The original is returned to the lender with the recording stamp on it.
Why the note stays out of the county records
A seller-financed sale produces a note, a security instrument and a deed, the core of the loan file described in the note basics guide, and only two of them go to the county.
| Document | What it does | Normally recorded? |
|---|---|---|
| Promissory note | The payer’s promise to repay, with the amount, rate and payment | No. The holder keeps the original. |
| Mortgage or deed of trust | Makes the property security for the note | Yes |
| Deed | Transfers ownership to the buyer | Yes |
Losing the original note is therefore a bigger problem than losing your copy of the mortgage, since the county can supply a copy of anything it recorded.
Later recordings on the same loan
- Assignment. If the note is sold, an assignment of mortgage transfers the security to the new holder, and recording it keeps the public record accurate about who holds the lien.
- Release or satisfaction. When the debt is paid off, the holder signs a release and it is recorded to clear the lien. Under a deed of trust the document may be called a reconveyance.
- Modification. If the loan terms are formally changed, the change may be recorded too.
What a note buyer looks for
A note buyer orders a title search before funding. They want to see your mortgage on record, in the lien position you described, with nothing unexpected ahead of it. A properly recorded first lien is the simplest thing to price, and a gap in the recording can slow a sale or lower an offer, which is one of the ways paperwork quality affects your note’s value.
How to check whether yours was recorded
Look at your copy of the mortgage or deed of trust. A recorded document carries the county’s stamp, with a date and a reference number. If you cannot find a stamped copy, search the county’s land records under your name or the payer’s name. Some counties put the index online, and the recorder’s office can tell you how to search where they do not. A title company can also run the search for you.
If the document turns out never to have been recorded, it may still be possible to record it now. Speak to a title company or attorney first, because anything recorded in the meantime may rank ahead of you. Once you know the recording date and reference, add them to the details you send when you ask us to price your note.
Related questions
Is an unrecorded mortgage still valid?
It is generally still binding between the people who signed it. The risk is with third parties, such as a later buyer or lender who had no notice of it. The effect depends on state law, so ask an attorney.
Who records the mortgage in a seller-financed sale?
The title company or attorney handling the closing, where there is one. If the sale closed without either, recording may have been left to the seller, so check for the county's stamp on your copy.
Is a deed of trust recorded the same way as a mortgage?
Yes. A deed of trust is filed in the same county land records and serves the same purpose of public notice and priority.