Check Your Understanding Answers
- What two factors primarily determine lien priority?
- the lien's categorization as superior or junior
- the date of recordation of the lien
- Give an example of when lienholders may subordinate their liens.
A mortgage lender may require all other lienholders to subordinate their interest in order for the lender to provide the mortgage.
- What types of liens are considered superior liens?
- Real estate tax liens
- Special assessment liens
- Federal and state inheritance tax liens
- Which tax liens are junior liens?
- Federal income tax lien
- State corporate income tax lien
- State intangible tax lien
- State corporation franchise tax lien
