1) Lien Priority: First in Time, First in Right
The general rule in property law is that liens have priority in the order that they are filed in the county records office. This is known as the first in time, first in right rule. Based on this principle, a recorded interest has priority over later recorded interests. For example, a first mortgage or second mortgage will typically have priority over a judgment lien since the judgment creditor usually records its lien after the mortgage company has recorded its mortgage.
Exceptions to the First in Time, First in Right Rule
2) As with most rules, there are exceptions to the first in time, first in right rule. Certain liens such as property tax liens, special assessment taxes, HOA and COA assessment liens, and mechanic’s liens can have priority over previously recorded liens, though this depends on state law.
The general rule in property law is that liens have priority in the order that they are filed in the county records office. This is known as the first in time, first in right rule. Based on this principle, a recorded interest has priority over later recorded interests. For example, a first mortgage or second mortgage will typically have priority over a judgment lien since the judgment creditor usually records its lien after the mortgage company has recorded its mortgage.
Exceptions to the First in Time, First in Right Rule
2) As with most rules, there are exceptions to the first in time, first in right rule. Certain liens such as property tax liens, special assessment taxes, HOA and COA assessment liens, and mechanic’s liens can have priority over previously recorded liens, though this depends on state law.