Escrow & Title
In New Mexico, the priority of liens is generally determined by:
AThe size of the lien
BThe date and time of recording (first in time, first in right)✓ Correct
CThe type of lien—mortgage liens always have priority
DThe lender's preference
Explanation
Lien priority in New Mexico generally follows the recording date and time—the first recorded lien has priority over later liens. Exceptions include property tax liens, which have super-priority.
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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.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
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