Florida Broker Practice Exam

What are considered superior liens?

1. Judgment liens

2. Real estate property tax liens and federal estate tax liens

3. Mechanic's liens

4. Leasehold liens

The correct answer is: Real estate property tax liens and federal estate tax liens

Superior liens refer to liens that take precedence over others when it comes to the order of claim against a property. In the context of Florida and general property law, real estate property tax liens are typically considered superior because they are tied to the ownership of the property and are necessary for funding local government services. The government has the authority to enforce these liens to assure tax collection, which places them at a high priority compared to other liens. Federal estate tax liens also have a superior status because they arise from federal tax obligations, placing the government's claim ahead of most private claims. Both of these types of liens must be settled first when a property is sold or transferred. Other types of liens, like judgment liens, mechanic's liens, and leasehold liens, may have varying priorities based on circumstances and specific conditions of the legal claim. However, they generally do not supersede the priority established by tax liens. This establishes why real estate property tax liens and federal estate tax liens are collectively recognized as superior liens.