Escrow & TitleIntermediateNorth Carolina Exam

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), in most cases

DThe judge's discretion

Why The date and time of recording (first recorded = first priority) Is Correct

Answer B: The date and time of recording (first recorded = first priority)

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.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.