§ 2898 Purchase Price Lien Priority

Civil Code·California

AI SummaryVerified

Key Takeaways

•If you buy a house and take a loan (mortgage) for it, that loan gets paid first if there are other debts on the house.
•This rule also applies if you have a long-term lease on property and take a loan using that lease as security.
•The loan for buying the house comes before other money owed, but only if the loan is recorded properly.

Example

You buy a house with a bank loan, and later, someone sues you and wins money that puts a lien on your house.

The bank loan you used to buy the house gets paid first before the person who sued you gets any money from selling the house.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 2898 Purchase Price Lien Priority

(a) A mortgage or deed of trust given for the price of real property, at the time of its conveyance, has priority over all other liens created against the purchaser, subject to the operation of the recording laws. (b) The priority of the lien of a mortgage or deed of trust on an estate for years in real property shall be determined in the same manner as for determining the priority of a lien of a mortgage or deed of trust on real property. (Amended by Stats. 1989, Ch. 698, Sec. 3.)

Last verified: January 21, 2026

Key Terms

mortgage deed of trust priority liens real property estate for years

References

Official text at leginfo.legislature.ca.gov
California Legislature. Civil Code. Section 2898.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References