What occurs when a mortgage is recorded?

When a mortgage is recorded, it becomes a matter of public record. This process involves the documentation of the mortgage in the appropriate government office, typically at the county clerk or recorder’s office. Recording the mortgage provides legal notice to the public regarding the lender's interest in the property, establishing priority over other claims against the property. This public recording is crucial because it protects the lender's rights and provides transparency in property ownership, ensuring that potential buyers or other parties interested in the property are aware of any encumbrances or liens.

The other options do not accurately reflect what happens when a mortgage is recorded. The title to the property remains with the owner, and there is no transfer of ownership involved at the point of recording a mortgage. Additionally, the recording does not automatically result in the lender approving additional funding, nor does it involve an appraiser evaluating the property. These activities may be part of the mortgage process but are separate and distinct from the act of recording the mortgage itself.