Liens generally follow the “first in time, first in right” rule, which says that whichever lien is recorded first in the land records has higher priority than later recorded liens. For example, a mortgage has priority over a judgment lien if the lender records it before the judgment creditor
What generally gives a lien highest priority quizlet?
Real estate taxes and special assessments generally take priority over all other liens, regardless of the order in which the liens are recorded. This means that outstanding real estate taxes and special assessments are paid from the proceeds of a court-ordered sale first.
Which lien is highest in priority?
A general rule in property law says that whichever lien is recorded first in the land records has higher priority over later-recorded liens. This rule is known as the “first in time, first in right” rule.
What factors determine lien priority?
Two factors primarily determine lien priority: The lien’s categorization as superior or junior . The date the lien was recorded. A junior lien is automatically inferior, or subordinate, to a superior lien.
What is the priority of liens based on?
The law in California regarding lien priority is generally, “first in time, first in right .” There are exceptions however, as some liens have “skipping” power.
Which of the following liens are superior in terms of lien priority?
In fact, tax liens are superior to almost all other types of liens. If you or your loan servicer don’t pay the taxes on your property, the property might go to a tax sale. If this happens, both you and the lender could lose the property to a third party for the nominal amount of the taxes due.
Which is a superior lien?
Definition: a lien that takes priority over all other liens . Pronunciation: su̇-ˈpir-ē-ər ˈlēn Used in a Sentence: Real estate property tax liens are a type of superior lien .
How is the priority of general liens normally determined?
Normally, the priority of general liens is determined by ich they are filed or recorded .
What is an equitable lien in real estate?
equitable lien. n. a lien on property imposed by a court in order to achieve fairness , particularly when someone has possession of property which he/she holds for another.
Which statement most accurately describes special assessment liens?
Which statement MOST accurately describes special assessment liens? They are paid on a monthly basis. They are general liens. They cannot be prepaid in full without penalty.
Which lien is first in priority quizlet?
The lien priority of mortgages and deeds of trust is generally established by recording date. ‘First in time is first in right . ‘ Voluntary liens are liens the property owner agrees to in a contract: a mortgage or deed of trust lien.
What type of lien would take priority over a first mortgage quizlet?
Real property tax liens and assessment liens always take priority over all other liens.
What type of agreement is used to change the priority of liens?
So, the purpose of a subordination agreement is to adjust the new loan’s priority so that in the event of a foreclosure, that lien gets paid off first. In a subordination agreement, a prior lienholder agrees that its lien will be subordinate (junior) to a subsequently recorded lien.
Which option best defines an equitable lien?
An equitable lien is a claim on property by someone other than the owner when an unpaid debt is owed .
Which of the following has priority over the proceeds of a mortgage foreclosure sale?
The priority of proceeds from a foreclosure sale is as follows: 1) express of the sale, attorney’s fees, and court costs , 2) the principal and accrued interest on the foreclosing party’s loan; 3) any junior lienos or other junior interests in the order of their priority; and then 4) the mortgagor.
Which of the following statements best defines equitable right of redemption?
minimizes the damage to the borrower’s credit. Which of the following statements best defines equitable right of redemption? The legal right of a borrower to redeem property between the time of default and the foreclosure sale.
