Which of these Liens has the 3rd highest priority?
First Mortgage Lien for $257,300 filed in 2002 |
Second Mortgage Lien for $74,000 filed in 2005 |
Property Tax Lien for $12,500 filed in 2005 |
Mechanic’s Lien for $16,050 filed in 2000 |
General Lien filed for $22,000 in 2001 |
The general rule in property law is that liens have priority in
the order that they are filed in the country records office. This
is known as the first in time, first in right rule. Based on this
principle, a recorded interest has priority over later recorded
interests.
EXCEPTION
There are exceptions to this rule. Certain liens, like property tax liens, special assessment taxes and mechanic's liens can have priority over previously recorded liens, though this depends on state law.
So in our case following will be the priority list:
Mechanic's Lien
Property Tax Lien
First Mortgage Lien
Second Mortgage Lien
General Lien
So as per the above discussion
First Mortgage Lien filed in 2002 will be the 3rd highest
priority.
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