Which statement regarding priority of liens is true?

The statement that property tax liens are superior to other liens regardless of date accurately reflects the principle of lien priority in real estate law. Property tax liens, often imposed by a government entity for unpaid property taxes, hold a unique status because they are considered a claim against the property that must be satisfied before other financial interests. This means that if a property is sold or foreclosed upon, the outstanding property taxes must be paid first, before any other liens, such as mortgage or judgment liens, are settled.

The principle of priority among liens is generally based on when the lien was created; however, property tax liens always maintain a superior position. This reflects the importance placed on tax revenue for local governments and the necessity to ensure taxes owed are paid to maintain the public services funded by these taxes.

While other options may provide insights into ranking liens, they do not accurately capture the supremacy of property tax liens in this context. Understanding lien priority is essential for anyone involved in real estate transactions or property ownership, as it impacts the rights of lenders, homeowners, and other parties with interests in the property.