Florida Real Estate Sales Associate Examination Content OutlineReal Estate Property and OwnershipMedium
A buyer is purchasing a property in Florida and discovers that the previous owner failed to pay property taxes for the last three years. Which of the following statements correctly describes the status of these unpaid taxes?
- AThey are a specific, voluntary lien against the property.
- BThey constitute a superior lien, taking precedence over other liens.
- CThey are extinguished upon transfer of ownership to a new buyer.
- DThey become a junior lien, subordinate to any existing mortgage.
Show answer & explanationAnswer & explanation
Correct answer: B. They constitute a superior lien, taking precedence over other liens.
Unpaid property taxes create a superior lien against the property, meaning they take precedence over almost all other liens, including first mortgages. This ensures the government's ability to collect necessary revenue.
Why the other options are wrong
- A. Property tax liens are involuntary and specific, but most importantly, they are superior.
- C. Tax liens transfer with the property; they are not extinguished by a sale.
- D. Property tax liens are superior, not junior.
Property Tax Lien
An involuntary, specific lien placed on real property by local government for unpaid property taxes.
- Superior lien: takes priority over almost all other liens.
- Specific lien: attaches only to the property taxed.
- Involuntary lien: created by law, not owner's consent.
Memory trick: Tax liens are TOP PRIORITY!