What is lien priority and how is it determined?

Lien priority determines the order in which liens are paid when a property is sold, typically at foreclosure. The general rule is first in time, first in right, meaning liens are paid in the order they were recorded. However, property tax liens and special assessment liens always take first priority regardless of recording date. After taxes, liens are paid in chronological order of recording until the sale proceeds are exhausted. Junior liens may receive nothing if proceeds are insufficient.