What priority do tax liens have over other types of liens?

Tax liens take priority over other types of liens due to their legal status and the government's interest in collecting taxes owed. This priority means that, in the event of a property sale or foreclosure, tax liens must be satisfied first before any other claims against the property are addressed.

This priority is primarily in place to ensure that governments can efficiently collect taxes, which are essential for funding public services and infrastructure. Thus, even if a property has been mortgaged or if there are other claims from creditors, the government’s claim via a tax lien is upheld above them in terms of payment priority.

Understanding the hierarchy of liens is crucial for both property owners and potential buyers, as it affects the financial implications of purchasing property that has existing liens. In scenarios where a property has multiple liens, the presence of a tax lien could significantly impact decisions related to purchasing, refinancing, or selling the property.