Property OwnershipIntermediateDelaware Exam

What is 'priority of liens' in Delaware and why does it matter in foreclosure?

AAll liens in Delaware are equal regardless of recording date
BLiens have a priority order that determines who gets paid first when property is soldCorrect
CThe lender with the largest loan always has the highest priority
DLien priority is always determined solely by the amount owed, and never by the actual recording date

Why Liens have a priority order that determines who gets paid first when property is sold Is Correct

Answer B: Liens have a priority order that determines who gets paid first when property is sold

Lien priority in Delaware determines the order of payment from foreclosure proceeds. Property taxes typically have super-priority (paid before mortgages).

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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