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?

Rationale

The tax lien has priority.

In the context of liens, tax liens generally take precedence over other types of liens, including mechanic's liens, due to statutory regulations. Here, the tax lien filed on March 10th supersedes both Client A's and Client B's liens that were recorded earlier.

A (Client A's lien) YOUR ANSWER

Client A's mechanic's lien was dated March 2nd and recorded on March 5th. While it may have been established before the tax lien, it is still subordinate to the tax lien because tax liens have priority over mechanic's liens as per legal statutes.

B (Client B's lien) YOUR ANSWER

Client B's lien, dated March 3rd and recorded on March 4th, also falls behind the tax lien. Similar to Client A's lien, its earlier recording does not grant it priority over tax liens, which are privileged in most jurisdictions.

C (the judgment) YOUR ANSWER

The judgment lien filed on March 10th occurs simultaneously with the tax lien but does not have priority over it. In most cases, tax liens hold precedence over judgment liens, making this choice incorrect in establishing priority.

D (the tax lien) CORRECT

Tax liens are typically prioritized above mechanic's and judgment liens due to their nature as obligations owed to the government. As such, even though filed after the other liens, it supersedes both Client A's and Client B's liens, establishing its precedence.

Conclusion

In the hierarchy of liens, tax liens take precedence over mechanic's and judgment liens, regardless of their recording dates. In this scenario, the tax lien filed on March 10th has priority over both Client A's and Client B's earlier mechanic's liens, as well as the judgment lien, solidifying its status as the dominant claim against the property.

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?

The tax lien has priority.

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