What is the

"First in time, first in right" is a general rule which typically arises in commerical foreclosure and commercial lease matters.  The "first in time, first in right" rule pertains to the timing of the execution of contracts.

Frequently, when one purchases a commerical property, one may do so with a commerical mortgage.  Thereafter, the owner will enter into a commerical lease agreement for the property.  However, the commerical property owner may default on the mortgage and then the commerical property may enter into commercial foreclosure status.  When this occurs, the "first in time, first in right" rule may come into play.

When the rule is applied, the mortgage date and the lease date will be reviewed.  If the mortgage date was prior to the commerical lease date, then the mortgage date has precedence, or is "first in time, first in right" over the lease.  Thus, if the mortgagor decides to foreclose on the property and sell the property, the purchaser of the proeprty will have the ability to either take over the existing lease, cancel the lease or modify the lease. 

It is important to note that every state has different rules pertaining to the particular application of the "first in time, first in right" rule, so it is crucial to consult with the law of one's jurisdiction.

If one is faced with a commercial foreclosure matter, one should consult with an experienced commerical foreclosure attorney as soon as possible.  An experienced foreclosure attorney can recommend a prudent course of action which can preserve one's legal rights.