Escrow & Title
Under NC law, the priority of a purchase money deed of trust (given at time of sale) over other liens is established by:
AThe date the deed is delivered
BThe recording date and time of the deed of trust in the Register of Deeds✓ Correct
CThe lender's approval date
DThe date the HUD-1/Closing Disclosure was signed
Explanation
Lien priority in NC is determined by recording date and time. A purchase money deed of trust typically has priority over judgment liens and other liens that attach when the deed is recorded.
Related North Carolina Escrow & Title Questions
- A 'cloud on title' in North Carolina is best described as:
- Which of the following is typically a seller's closing cost in a North Carolina transaction?
- A lender's title insurance policy in NC protects:
- The North Carolina excise tax (revenue stamps) on a deed is charged at:
- In NC, which standard exception in a title insurance policy is typically NOT covered without a survey?
- Constructive notice in North Carolina real estate means:
- Under NC's recording act, a bona fide purchaser for value (BFP) who takes without notice of a prior unrecorded claim and records first will:
- In a NC residential transaction, who typically pays the owner's title insurance premium?
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →