Escrow & Title
In Texas, 'priority of liens' generally follows the rule of:
ALargest lien has priority
BFirst recorded, first in right (first to record has the superior claim), subject to exceptions for property taxes and some other superior claims✓ Correct
CMost recent lien always has priority
DTREC determines lien priority in disputed cases
Explanation
Under Texas's race-notice recording act, priority generally goes to the first lien or claim to be properly recorded. Exceptions include: property taxes (always have first priority), mechanics' and materialmen's liens (priority depends on when work commenced), and some other statutory liens. This is why recording promptly is critical in real estate transactions.
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