Financing Your Build / Closing Out Loans

Recording Mortgage Documents

Recording mortgage documents is an essential part of the homebuying process, ensuring that your mortgage and the property title are legally documented and acknowledged. The recording process provides public notice of your ownership interest in the property and ensures the proper lien position of your mortgage. Here's what you need to know about recording mortgage documents:

Which Documents Are Recorded

The two primary mortgage documents that need to be recorded are:

  1. Deed of Trust or Mortgage: This document outlines the agreement between you (the borrower) and the lender. It provides details about the loan terms, the property used as collateral, and the borrower's rights and responsibilities. It also establishes the lender's legal claim or lien on the property until the loan is fully repaid.
  2. Deed: This document transfers ownership of the property from the seller to the buyer. It includes information about the property, the grantor (seller), the grantee (buyer), and a legal description of the property.

How Mortgage Documents Are Recorded

The process of recording mortgage documents typically involves the following steps:

  1. Preparation: Your attorney, escrow agent, or title company will prepare the mortgage and deed documents, ensuring that they are accurate and complete. They'll obtain the necessary signatures and acknowledgments from all relevant parties.
  2. Submission: The completed documents are submitted to the appropriate county recorder's office (sometimes called the registrar of deeds or county clerk) in the jurisdiction where the property is located. Each jurisdiction has specific requirements for document format, fees, and recording procedures.
  3. Recording: The county recorder's office will review the documents for completeness and compliance with local requirements. If everything is in order, they'll officially record the documents by assigning a unique identification number or book and page number, and then entering them into the public record.
  4. Notification: Once the documents have been recorded, the recorder's office will typically return the original documents, along with a recording receipt, to the submitting party. This receipt serves as proof that the documents have been officially recorded.
  5. Title Update: The title company or attorney will update the property's title report to reflect the new ownership and mortgage information. This ensures that the title is accurate and up-to-date for future transactions, such as refinancing or selling the property.

Recording your mortgage documents is a crucial step in establishing your legal rights and interests in the property. Be sure to work closely with your attorney, title company, or escrow agent to ensure that your mortgage documents are accurately prepared and promptly recorded.