Alabama Real Estate Practice Exam

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How are lien payments prioritized?

  1. By the date the lien was filed

  2. By the amount of the lien

  3. General real estate taxes and special assessments first

  4. Based on the type of property

The correct answer is: General real estate taxes and special assessments first

Payment priorities for liens are determined by which lien should be paid first. While A is a possible method, it is not the correct one in all cases. B is also a possible method, but there are situations where the amount of the lien does not determine priority. D is not a factor in determining payment priority. Therefore, the correct answer is C, where general real estate taxes and special assessments are paid first, followed by other liens. This is because taxes and special assessments are considered superior liens as they support government services and improvements.

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