California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

Practice this question and more.

Generally, which lien will have the first priority of payment?

Mortgage lien
Mechanic's lien
Judgment lien
Property tax lien

The correct answer is: Property tax lien

Property tax liens typically have the first priority of payment because they are enforced and collected by the government. This means they take precedence over other types of liens, such as mortgage liens, mechanic's liens, and judgment liens. Mortgage liens are placed on property by a lender as security for a loan and are usually paid first after a property is sold. Mechanic's liens are placed on a property by contractors or suppliers who have not been paid for their work or materials. Judgment liens are placed on a property by a court order to collect a debt. While these types of liens can affect the sale of a property, they typically take a lower priority than property tax liens. Therefore, property tax liens are generally the first priority of payment.