Printable Format58-2305. Purchase money mortgage; priority. A mortgage given by a purchaser to secure the payment of purchase money shall have preference over a prior judgment against such purchaser.
History: G.S. 1868, ch. 68, ยง 4; October 31; R.S. 1923, 67-305.
Law Review and Bar Journal References:
The future advance mortgage, 1 W.L.J. 453, 460 (1961).
CASE ANNOTATIONS
1. Lien for purchase price created by express agreement. Smith v. Rowland, 13 K. 245.
2. Mortgage for purchase price takes priority over prior judgments. Babcock v. Jones, 15 K. 296; Plumb v. Bay, 18 K. 415; Holden v. Garrett, 23 K. 98; Jackson v. Reid, 30 K. 10, 1 P. 308.
3. Mortgage given third party for loan to pay vendor is purchase-money mortgage. Home Owners' Loan Corp. v. Humphrey, 148 K. 779, 784, 85 P.2d 7.
4. Cited; chattel mortgage for purchase price given priority over mechanics' lien. Finnegan v. Ihinger, 150 K. 357, 367, 92 P.2d 538.
5. Cited; mechanic's lien holder should secure personal judgment and foreclosure in same action. Home State Bank v. P.B. Hoidale Co., 239 K. 165, 166, 169, 718 P.2d 292 (1986).
6. Mechanic's lien attaching after execution but before recording of purchase money mortgage has priority where lienholder has no actual knowledge of mortgage. Shade v. Wheatcraft Industries, Inc., 248 K. 531, 536, 538, 809 P.2d 538 (1991).
7. Issue of purchase money mortgage having priority over judgment lien where mortgage used to purchase land and construct house examined. Resolution Trust Corp. v. Bopp, 18 K.A.2d 271, 272, 850 P.2d 939 (1993).
8. Cited; purchase money first mortgage takes priority over tax lien. American General Financial Services, Inc. v. Carter, 39 K.A.2d 683, 686, 687, 184 P.3d 273 (2008).
9. Bank's purchase money lien in debtor's fee interest in property did not have priority over first-filed lien arising from ground lease mortgage on same property. In re Black Angus Holdings, LLC, 434 B.R. 612 (2010).