Final answer:
The date and time a document was recorded in the public records helps to establish priority of mortgages and liens, abstract of title, and marketable title.
Step-by-step explanation:
The date and time a document was recorded in the public records helps to establish the priority of mortgages and liens. When multiple mortgages or liens are filed against a property, the one that is recorded first generally takes priority. Additionally, the date and time of recording can be used to establish the abstract of title which is a historical summary of all recorded documents related to the property.
For example, if two lenders hold mortgages on a property but one was recorded earlier than the other, the lender with the earlier recording date will have first priority in the event of default or foreclosure. This information is crucial for determining who gets paid first in the distribution of funds from the sale of the property.
Marketable title refers to a property title that is free from defects or claims that could affect the property's ownership. The date and time of recording can be used to establish a clear chain of ownership and ensure a marketable title.