Question

Which of these Liens has the 3rd highest priority? First Mortgage Lien for $257,300 filed in...

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

Homework Answers

Answer #1

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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