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

[Compliance with Laws and Regulations -- Lien Priority]In North Carolina, which lien has the highest priority when property is sold to recover a debt?
A) Ad valorem property tax lien
B) Judgment lien
C) Mortgage lien
D) Whichever lien was recorded first

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?

Show Suggested Answer Hide 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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Luis
9 hours ago
A) Ad valorem property tax lien has the highest priority!
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Fernanda
6 days ago
I thought it was about the order of recording, but I guess that only applies if there are no tax liens involved.
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Daniel
11 days ago
I want to say it's the ad valorem property tax lien, but I keep mixing it up with judgment liens.
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Melissa
16 days ago
This question feels familiar; I think we practiced something similar in class about lien priorities.
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Jina
2 months 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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