New York Real Estate Salesperson ExaminationProperty OwnershipHard
A homeowner in New York has an unpaid property tax bill. The local municipality places a claim against the property to secure the payment of these taxes. What type of encumbrance is this, and what is its typical priority relative to other liens?
- AA general lien; its priority is determined by its recording date.
- BA specific lien; it typically has super-priority over other liens.
- CA voluntary lien; it has junior priority to all recorded mortgages.
- DAn easement; it does not affect the property's financial encumbrances.
Show answer & explanationAnswer & explanation
Correct answer: B. A specific lien; it typically has super-priority over other liens.
An unpaid property tax bill results in a specific, involuntary lien against the property. In New York and most jurisdictions, property tax liens have 'super-priority,' meaning they take precedence over almost all other liens, including first mortgages, regardless of recording date.
Why the other options are wrong
- A. Property tax liens are specific, not general (which attach to all of a person's property), and their priority is statutory, not solely based on recording date.
- C. Property tax liens are involuntary and have high priority, not junior priority.
- D. An easement is a right of use, not a financial encumbrance, and does not relate to unpaid taxes.
Property Tax Lien
A specific, involuntary lien placed on real property by a government entity for unpaid property taxes, typically holding super-priority over other liens.
- Specific: attaches only to the property taxed.
- Involuntary: imposed by law, not by choice.
- Super-priority: generally paid first in foreclosure, even over first mortgages.
- Can lead to tax sale if unpaid.
Memory trick: Tax liens are tough, specific, and top.