Real Estate Licensing NCREC-Broker-N Exam - Topic 4 Question 2 Discussion

Actual exam question for Real Estate Licensing's NCREC-Broker-N exam

Question #: 2
Topic #: 4

[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?

AAd valorem property tax lien

BJudgment lien

CMortgage lien

DWhichever lien was recorded first

Show Suggested Answer

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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by Annelle at Oct 04, 2025, 12:59 PM

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Dorcas

5 days ago

They are, but not stronger than property tax liens.

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Lauran

10 days ago

I agree with Candra. Taxes come first!

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Reynalda

15 days ago

No way, A is definitely the highest priority in NC.

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Sharita

21 days ago

Really? I thought it was D. Whichever lien was recorded first.

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Candra

26 days ago

I think it's A. Ad valorem property tax lien.

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Kasandra

1 month ago

Sounds too simple, but I guess that's the law!

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Raina

1 month ago

Nope, tax liens always take precedence in NC!

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Beata

1 month ago

Wait, are you sure? I thought it was based on recording date.

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Devon

2 months ago

Totally agree, taxes come first!

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German

2 months ago

I remember something about the order of liens, but I can't recall if it was just about recording dates or if taxes take precedence.

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Angella

2 months ago

I’m a bit confused about the judgment lien versus the mortgage lien. I think the tax lien is definitely the top priority, but I’m not 100% certain.

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Mi

2 months ago

I feel like we practiced a question similar to this in class, and I think the answer was about ad valorem property tax liens being first.

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Sang

2 months ago

A) Ad valorem property tax lien has the highest priority!

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Tegan

2 months ago

I think I remember that property tax liens usually have the highest priority, but I'm not completely sure.

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Samira

3 months ago

But what about B? Judgment liens can be pretty strong too.

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Reynalda

3 months ago

Exactly! Always prioritize taxes in these cases.

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Crissy

3 months ago

D) Whichever lien was recorded first. That's the classic rule of thumb, so I'm going with that.

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Benton

3 months ago

B) Judgment lien seems like the obvious choice here. Gotta pay your debts, no matter what!

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Glendora

4 months ago

Haha, I bet the answer is A) Ad valorem property tax lien. You can't escape those taxes, even when you're in debt!

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Argelia

4 months ago

D) Whichever lien was recorded first makes the most sense to me. That's how it works in most states, so it's probably the same in North Carolina.

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Rasheeda

4 months ago

I think it's C) Mortgage lien. That's the one that's usually the highest priority, right?

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Stefany

4 months ago

Ugh, lien priority is not my strong suit. Let me think this through step-by-step. North Carolina, property sale, recovering debt... Okay, I'm leaning towards D, whichever lien was recorded first, but I'm not 100% sure.

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Refugia

4 months ago

Okay, I think I've got this. The key is understanding how lien priority works in North Carolina. I'm pretty confident the answer is C, the mortgage lien, since those typically take precedence over other liens.

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Eura

4 months ago

Hmm, I'm a little unsure about this one. I know lien priority can get tricky, especially with different types of liens. I'll need to review my notes on North Carolina property law to figure this out.

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Rolande

5 months ago

I'm pretty sure it's the ad valorem property tax lien, since those are usually the highest priority. But I'll double-check the laws on lien priority just to be sure.

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