Florida Broker Practice Exam

What happens to a specific lien when the owner fails to pay property taxes?

1. It becomes inferior

2. It may lead to foreclosure

3. It is automatically discharged

4. It remains unaffected

The correct answer is: It may lead to foreclosure

When a property owner fails to pay property taxes, the specific lien associated with those taxes can lead to foreclosure. Property tax liens have priority over other types of liens, meaning they take precedence in the hierarchy of obligations owed against a property. If the owner neglects to pay the owed taxes, the local government can initiate foreclosure proceedings to recover the unpaid taxes by selling the property at a tax lien sale. This process allows the government to collect the debt, thereby protecting its revenue source. This scenario illustrates the importance of maintaining timely tax payments, as failing to do so can significantly impact property ownership and control. In contrast, a tax lien does not become inferior or lose its priority status; it is not automatically discharged simply due to non-payment, nor does it remain unaffected. Therefore, the risk of foreclosure is a direct consequence of failing to address property tax obligations.