What is the correct order of lien priority in Delaware?

Prepare for your Delaware Salesperson Exam. Use our flashcards and multiple choice questions with detailed hints and explanations. Ace your test!

The correct order of lien priority in Delaware is determined by various factors including the type of lien, when it was recorded, and specific statutory guidelines. The reasoning behind the choice that involves state/municipal liens, super liens, first, and second mortgages reflects the hierarchy typically established in lien law.

In this context, state and municipal liens, which involve obligations such as property taxes or unpaid municipal bills, usually hold a top priority because they are essential for funding local government services. Super liens, often associated with certain homeowners' associations (HOAs) regarding unpaid dues, can take precedence due to statutory provisions that grant them enhanced status over regular mortgages. Following these, first mortgages are prioritized as they are the primary debt associated with the property and are often recorded before subsequent mortgages. Second mortgages, being junior liens, are placed last as they are subordinate to the more senior liens.

In short, this answer aligns with Delaware's lien hierarchy, recognizing that government-related obligations take precedence over private debt obligations, which is a critical principle in real estate finance.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy