According to Alabama lien law, which of the following has lien priority over a mechanics' lien?
Correct Answer
D) Property taxes
Under Alabama lien law, property taxes have priority over mechanics' liens and most other types of liens against real property.
Why This Is the Correct Answer
Property taxes are a government-imposed charge that enjoys super-priority status in Alabama — they are senior to virtually all other encumbrances, including mechanics' liens. This priority exists because the state and local governments must be able to collect taxes necessary to fund public services regardless of private contract disputes.
Why the Other Options Are Wrong
Option A: Personal loans secured by the property
Personal loans secured by the property (i.e., private mortgage or deed-of-trust debt) do NOT automatically have priority over mechanics' liens. Priority between a recorded mortgage and a mechanics' lien in Alabama generally depends on the date of recording or the date construction began — not the nature of the debt. Such loans do not have the blanket super-priority that property taxes enjoy.
Option B: Homeowner association dues
Homeowner association dues are a contractual obligation created by the HOA's CC&Rs. While they may have some enforcement mechanisms, they do not hold statutory super-priority over mechanics' liens under Alabama law. They rank below property taxes and generally below properly perfected mechanics' liens.
Option C: Credit card judgments
Credit card judgments are general unsecured debts that, even if reduced to a judgment lien, do not gain priority over a properly filed mechanics' lien. Judgment liens in Alabama are generally junior to mechanics' liens that were established earlier or that relate to improvements on the property.
Memory Technique
Remember the hierarchy: GOVERNMENT comes first. Property taxes = government revenue = top of the lien food chain. Everything private — mortgages, contractor liens, HOA dues, judgments — ranks below the government's tax claim.
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