Escrow & Title
A Minnesota property has two deeds of trust from the same lender. The second deed of trust was recorded after the first. Which lien has priority?
AThe second, since it is more recent
BThe first, under the principle of priority based on recording date✓ Correct
CThey are equal priority since they are from the same lender
DPriority is determined by the loan amounts
Explanation
In Minnesota's recording system, the general rule is 'first in time, first in right.' The first recorded lien has priority over later liens. Recording date and time determine priority in the absence of agreements otherwise. This priority system is fundamental to understanding how title and encumbrances work in Minnesota real estate.
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