Mortgages

Question 1

Purchase Money Mortgage

Answer 1

A mortgage that is granted too:

(i) the seller of real property or

(ii) a third-party lender, to the extent that the loan proceeds are used to acquire title to the real property or construct improvements on the real property if the mortgage is given as part of the same transaction in which title is acquired.

Generally has priority over mortgages and liens created by or that arose against the mortgage prior to the acquisition the property, whether or not recorded!