What is the legal effect of recording a mortgage in Delaware?

Recording a mortgage in Delaware serves the critical function of establishing a lien on the property. This means that once a mortgage is recorded, it creates a legal claim against the property that gives the lender a right to foreclose if the borrower defaults on the loan. The recorded mortgage not only ensures that the secured party's interest is protected but also provides public notice to other potential creditors and purchasers of the property about the lender's claim.

This is essential in real estate transactions, as it establishes the priority of claims against the property. Priority is determined by the order in which mortgages and liens are recorded, meaning that later claims may be subordinate to earlier recorded interests. The act of recording enforces the security interest, confirming the lender's rights and protecting them against subsequent purchasers or lenders who may claim an interest in the property without knowledge of the existing mortgage.

The other options do not accurately capture the legal consequences of recording a mortgage. While recording may help clarify ownership and lending rights, it does not void prior claims, guarantee the sale of the property, or ensure the seller retains ownership. Instead, it is fundamentally about establishing and protecting the lender's lien.