CHAPTER 7.03. Purchase Money Mortgages

• Jurisdiction: United States

7.03. Purchase Money Mortgages

A mortgage from the purchaser to the seller of the real property made for securing any portion of the purchase money for the sale of that real property is referred to in Delaware as a purchase money mortgage and has special treatment for lien priorities.²¹ If properly recorded within five days after recording the deed conveying the mortgaged property from the seller to the purchaser, the purchase money mortgage will have priority over any mortgage on that property or any other lien created separately by the mortgagor even though recorded on a date prior to the recording of the purchase money mortgage.²² For this reason, lenders making mortgage loans in transactions in which a purchase money mortgage is also given will take steps to make sure that the desired lien priority of the lender's mortgage...