Escrow & Title
Priority of liens in North Carolina is generally determined by:
AThe amount of the lien
BThe date and time of recording (first recorded = first priority)✓ Correct
CThe type of lien (tax liens always first regardless)
DThe judge's discretion
Explanation
Generally, lien priority is determined by the date and time of recording—the first recorded has priority. However, property tax liens typically have super-priority over other liens.
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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.
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.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
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