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Real Estate Licensing NCREC-Broker-N Exam - Topic 2 Question 15 Discussion

Actual exam question for Real Estate Licensing's NCREC-Broker-N exam
Question #: 15
Topic #: 2
[All NCREC-Broker-N Questions]

[Compliance with Laws and Regulations -- Lien Priority]

In North Carolina, which lien has the highest priority when property is sold to recover a debt?

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Suggested Answer: A

In North Carolina, and in most states, ad valorem (real estate) property tax liens have ''superior lien'' status. They take precedence over all other liens, regardless of recording date. This includes mortgage liens and judgment liens. Therefore, even if a mortgage was recorded first, a property tax lien takes priority. Correct answer: A.

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Jina
16 days ago
I think I remember that property tax liens usually have priority over other types of liens, but I'm not completely sure.
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