Escrow & Title
The doctrine of 'priority of liens' in Iowa means that generally:
AAll liens on a property must be paid equally at closing
BThe lien recorded first in time takes priority over liens recorded later✓ Correct
CProperty tax liens always take priority over all other liens
DMechanic's liens always have priority over mortgages
Explanation
Under Iowa recording law, the 'first in time, first in right' rule generally applies — the lien or interest recorded first takes priority. An important exception is property taxes, which are given statutory priority over other liens regardless of recording date.
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