What is a first or paramount lien?

What is a first or paramount lien?

• A. A lien that is subordinate to mortgage liens.
• B. Municipal liens are the primary lien on the land and are superior to all other liens.
• C. It applies only to water charges.
• D. It is created after mortgage liens.

Answer: (B)

A first or paramount lien is the municipal tax lien that has priority over all other liens on the property. This means taxes and other municipal charges attach to the property with the highest priority, so they are paid first from any proceeds when the property is sold or when the debt is collected. This priority protects the municipality’s ability to secure funded services for the area, regardless of when other debts were created or recorded. It isn’t limited to water charges alone; it covers property taxes and related assessments. It’s not something created after mortgage liens in terms of its basic priority—the tax lien already holds the superior position, ahead of most other liens.

A first or paramount lien is the municipal tax lien that has priority over all other liens on the property. This means taxes and other municipal charges attach to the property with the highest priority, so they are paid first from any proceeds when the property is sold or when the debt is collected. This priority protects the municipality’s ability to secure funded services for the area, regardless of when other debts were created or recorded. It isn’t limited to water charges alone; it covers property taxes and related assessments. It’s not something created after mortgage liens in terms of its basic priority—the tax lien already holds the superior position, ahead of most other liens.