A property carries a first mortgage recorded 4 March 2021, a home equity line recorded 9 August 2023, and a property tax lien for the 2024 year. Assuming applicable state law gives this property-tax lien priority over previously recorded mortgages, which lien has first priority?
Correct Answer
A) The 2024 tax lien outranks both of the mortgages, whatever the dates
A. The tax lien has priority under the stated state-law assumption. The question supplies a statutory priority rule; apply it before comparing recording dates. The older mortgage does not overcome that stipulated priority merely because it was recorded first. Scope and exceptions: Do not generalize to every tax, assessment or jurisdiction. Florida section 197.122(1) is a concrete state-law example, not nationwide law. Lien priority alone does not establish extinguishment in a particular foreclosure; procedure, notice and applicable law matter. Source: Section 197.122(1) — https://www.flsenate.gov/Laws/Statutes/2025/197.122
Why This Is the Correct Answer
A. The tax lien has priority under the stated state-law assumption. The question supplies a statutory priority rule; apply it before comparing recording dates. The older mortgage does not overcome that stipulated priority merely because it was recorded first. Scope and exceptions: Do not generalize to every tax, assessment or jurisdiction. Florida section 197.122(1) is a concrete state-law example, not nationwide law. Lien priority alone does not establish extinguishment in a particular foreclosure; procedure, notice and applicable law matter.
Why the Other Options Are Wrong
Option B: The 2021 first mortgage comes first, since recording date decides all
Recording chronology does not override the supplied statutory rule.
Option C: They rank equally and share any foreclosure proceeds in proportion
Equal ranking contradicts the stipulated priority.
Option D: The 2023 line comes first, as the most recent recording controls
The newest recording does not receive priority here.
Exam Tip
Identify statutory priority before ranking liens by recording date.
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