What must occur for a mortgage lien to be considered valid?

For a mortgage lien to be considered valid, it is essential that it is recorded with the clerk of the circuit court. This recording provides public notice of the lien, which establishes the lender's interest in the property and protects it against any subsequent claims or liens that may arise. Recording the mortgage also helps to establish priority among creditors; if the borrower defaults, the lender has a legal claim to the property.

When a mortgage is recorded, it creates a legal document that is accessible for public viewing, ensuring transparency in property ownership and financial obligations. This process is vital in the context of real estate transactions as it provides both parties and future potential buyers with clear information regarding the status of the property and any existing encumbrances. Therefore, the correctness of this answer lies in the necessity of the recording process for establishing a legitimate and enforceable mortgage lien.