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A property owner has not paid real estate taxes for three years. The county places a lien on the property. What is the effect of the tax lien?

Correct Answer

B) The tax lien takes priority over most other liens and may lead to a tax sale if not paid

A tax lien generally takes priority over other liens, including mortgages, regardless of when they were recorded. If the owner does not pay the delinquent taxes, the government may sell the property at a tax sale to satisfy the lien.

Answer Options
A
The owner immediately loses title to the property
B
The tax lien takes priority over most other liens and may lead to a tax sale if not paid
C
The tax lien is always inferior to a first mortgage lien
D
The lien is subordinate to all other liens and mortgages on the property

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Related Topics & Key Terms

Key Terms:

taxationtax_lienlien_prioritygovernment_powersproperty_ownership

Related Concepts

A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.

A life estate is a freehold estate that grants ownership rights for the duration of someone's life.

Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.

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