Which lien is typically placed to secure payment for current-year real estate taxes?

Which lien is typically placed to secure payment for current-year real estate taxes?

• A. First mortgage lien.
• B. Mechanic's lien.
• C. Real estate tax lien.
• D. Second mortgage lien.

Answer: (C)

The main idea is that property taxes create a lien on the property to secure the government’s right to collect the current year’s taxes. This real estate tax lien is attached automatically when taxes are assessed and typically takes priority over most private liens to ensure the government can recover revenue. That’s why it’s the best answer: it’s specifically the lien designed to secure payment of current-year real estate taxes. A first mortgage lien, on the other hand, secures a loan on the property. A mechanic’s lien arises from unpaid work or materials for improvements, not from taxes. A second mortgage lien is simply a subordinate mortgage securing an additional loan.

The main idea is that property taxes create a lien on the property to secure the government’s right to collect the current year’s taxes. This real estate tax lien is attached automatically when taxes are assessed and typically takes priority over most private liens to ensure the government can recover revenue. That’s why it’s the best answer: it’s specifically the lien designed to secure payment of current-year real estate taxes.

A first mortgage lien, on the other hand, secures a loan on the property. A mechanic’s lien arises from unpaid work or materials for improvements, not from taxes. A second mortgage lien is simply a subordinate mortgage securing an additional loan.