What does the 'first in time, first in right' principle refer to?

The principle of 'first in time, first in right' refers specifically to the priority of interests in a common law recording system. This principle dictates that among competing claims or interests in property, the first party to record their interest has priority over subsequent claims. This is particularly relevant in real property law, where the recorded interests in real estate can significantly impact ownership rights.

In a typical scenario, if two parties have competing claims to the same property, the party who recorded their claim first will generally have the superior claim, provided that they were acting in good faith. This priority system helps to establish clarity and predictability in property transactions, as parties can rely on the recorded interests to ascertain ownership and other rights associated with the property.

The other options do not accurately capture this principle. The timing of a will's creation relates to inheritance but does not pertain to recording interests in property. Similarly, the sequence of payments from an estate and the order of beneficiary claims focus on different aspects of estate law rather than the recording of property interests. Thus, the correct understanding of the 'first in time, first in right' principle is essential for anyone studying real property, particularly in jurisdictions following common law.