Among junior liens, the order of priority is generally established according to

Among junior liens, the order of priority is generally established according to

• A. the date of recordation.
• B. the amount.
• C. the order of disbursement.
• D. special agreement among lienees.

Answer: (A)

In real estate, who gets paid first among liens is determined by the date each lien was recorded. The lien recorded earliest has the higher priority, and any later-recorded liens sit behind it as junior to the earlier ones. This rule applies to junior liens like second mortgages or mechanics’ liens, unless the lienholders have entered into a subordination agreement to change the order. The size of the lien or the order in which funds are disbursed at closing does not establish priority. There are exceptions, such as property taxes or special assessments, which can take precedence over mortgage liens regardless of when they were recorded. So, among junior liens, the priority generally follows the date of recordation.

In real estate, who gets paid first among liens is determined by the date each lien was recorded. The lien recorded earliest has the higher priority, and any later-recorded liens sit behind it as junior to the earlier ones. This rule applies to junior liens like second mortgages or mechanics’ liens, unless the lienholders have entered into a subordination agreement to change the order. The size of the lien or the order in which funds are disbursed at closing does not establish priority. There are exceptions, such as property taxes or special assessments, which can take precedence over mortgage liens regardless of when they were recorded. So, among junior liens, the priority generally follows the date of recordation.