How is lien priority determined, and what liens typically have priority?

How is lien priority determined, and what liens typically have priority?

• A. Priority is determined by the size of the lien
• B. Priority is usually determined by the order of recording; government liens (property taxes) typically have priority
• C. Priority is determined by the date the lien was discovered
• D. Priority is random

Answer: (B)

When figuring out lien priority, the key idea is who gets paid first from the sale proceeds to satisfy all debts tied to a property. The general rule is first in time, first in right—the lien that was recorded first usually has the highest priority. An important exception is government liens for property taxes and assessments, which typically take priority over all other liens even if recorded later. After tax liens, other liens—like mortgages or mechanic’s liens—follow the order of their recording dates unless state rules say otherwise. So, priority isn’t based on how large the lien is, when it was discovered, or random luck. It’s about the recording timeline, with property tax and similar government liens often getting top priority.

When figuring out lien priority, the key idea is who gets paid first from the sale proceeds to satisfy all debts tied to a property. The general rule is first in time, first in right—the lien that was recorded first usually has the highest priority. An important exception is government liens for property taxes and assessments, which typically take priority over all other liens even if recorded later. After tax liens, other liens—like mortgages or mechanic’s liens—follow the order of their recording dates unless state rules say otherwise.

So, priority isn’t based on how large the lien is, when it was discovered, or random luck. It’s about the recording timeline, with property tax and similar government liens often getting top priority.