New Jersey Real Estate Practice Exam Practice Question
Client A's mechanic's lien is dated March 2nd and recorded March 5th. Johnson's Client B's lien is dated March 3rd and recorded March 4th. A tax lien and a separate judgment were filed on March 10th. Which of the following has priority?
Correct Answer: D
Rationale: In this scenario, the tax lien takes priority because it was filed after the mechanic's liens but before the judgment, establishing a clear timeline. Tax liens typically have priority over other types of liens due to their nature of securing government interests.
Client A's lien, recorded on March 5th, and Client B's lien, recorded on March 4th, both precede the tax lien but do not surpass its priority. The judgment, filed on March 10th, follows the tax lien and thus ranks lower. Therefore, the tax lien stands as the highest priority claim in this situation.
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