This rule, however applies only if the second beneficiary had actual or constructive notice of the prior interest. Thus, a Deed of Trust dated and delivered by the trustor to the beneficiary in January, 2018 will have priority over one dated and delivered in February, 2018. That section states that other things being equal, different liens on the same property have priority according to their time of creation. First in Time of Creation Is First in RightĬalifornia’s basic rule of priority governing consensual liens is in Civil Code Section 2897. Part 3 will cover certain non-consensual liens including judgment liens and tax liens. ![]() Part 2 will discuss parties’ voluntary alteration of their priorities using Subordination Agreements. Part 1 of this article is an overview of the general California rules of priority, and some common priority disputes involving deeds of trust. ![]() In the case of consensual liens, the parties may agree to alter their relative priorities, primarily through the use of Subordination Agreements. deeds of trust) or non-consensually and imposed by law (e.g. Broadly speaking, liens may be established consensually, per the agreement of the parties (e.g. When two or more persons have liens on real property, priority rules establish which liens are superior and which are subordinate. Williams & Associates Part 1: General Rules of Priority Deeds of Trust
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