Property Ownership
A senior lien has priority over a junior lien. In the event of foreclosure, the proceeds are distributed:
AEqually among all lienholders
BTo senior lienholders first, then to junior lienholders in order of priority✓ Correct
CTo the most recent lien first
DTo the largest lien first
Explanation
Upon foreclosure, proceeds are distributed in order of lien priority: senior lienholders are paid first from available proceeds, then junior lienholders in sequence. If proceeds are insufficient, junior lienholders may receive nothing.
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Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
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