Escrow & Title

In Rhode Island, what is 'priority of liens' and why does it matter?

AThe alphabetical ordering of lienholder names
BThe order in which liens are satisfied from sale proceeds, typically based on recording date and type of lien✓ Correct
CA list of all liens filed in a single month
DThe minimum amount required to satisfy a lien

Explanation

Priority of liens determines the order in which creditors are paid from the proceeds of a foreclosure sale. Generally, first recorded liens are paid first, though some liens (such as property tax liens) may have super-priority regardless of recording date.

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