Escrow & Title
A 'first position' mortgage (first lien) in Georgia is superior to subsequent liens because it was:
AThe largest loan amount
BRecorded first in the public records✓ Correct
CApproved by a federal agency
DSigned by the most creditworthy borrower
Explanation
In Georgia's race-notice recording system, the first mortgage to be recorded generally has priority (first position) over subsequent mortgages or liens, subject to certain exceptions like property taxes.
People Also Study
Related Georgia Questions
- Proration at closing: The seller has prepaid property taxes of $3,600 for the full year. Closing is on September 30 (day 273 of 365). How much does the buyer owe the seller at closing? (Use 365-day method)Real Estate Math
- The priority of liens against Georgia real property is generally determined by:Escrow & Title
- In Georgia, which lien has the highest priority over all other liens?Property Ownership
- A 'second lien position' holder in Georgia is at greater risk than a first lien holder because:Finance
- A property sold for $425,000. The Georgia intangible recording tax on a new $340,000 first mortgage is $3 per $1,000 (rounded up). What is the intangible tax?Real Estate Math
- A Georgia property appraised at $275,000 has an existing first mortgage of $180,000. The owner wants to take out a home equity loan for $50,000. What is the combined loan-to-value (CLTV) ratio?Finance
- An assumption of an existing mortgage means:Finance
- In Georgia, property taxes become a lien on the property as of:Escrow & Title
Key Terms to Know
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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Study This Topic
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →