Which term describes the priority of liens, where certain liens are superior to others?

• A. Lien Effective Date
• B. Priority of Liens
• C. Non-Monetary Encumbrances
• D. Adverse Possession

Answer: (B)

Priority of liens describes how different liens are ordered for payment from a property's sale or foreclosure proceeds. When multiple liens exist, the law decides which one gets paid first, often based on statutory rules or the date the lien was recorded or perfected. This ordering matters because it determines who receives payment first and how much, which can affect title and settlement outcomes. Some liens, like property taxes, typically have top priority, with other liens following in a defined sequence. The term that fits this concept is the priority of liens. The other terms don’t fit: Lien effective date isn’t a standard term for lien order; Non-Monetary encumbrances refer to restrictions without a monetary claim; Adverse possession is a method of acquiring title, not a mechanism for lien priority.