Florida Broker Practice Exam

Which type of lien is associated with property taxes and special assessments?

1. Superior lien

2. Judgment lien

3. General lien

4. Vendor's lien

The correct answer is: Superior lien

The correct choice is associated with property taxes and special assessments due to the nature of their precedence in the hierarchy of liens. A superior lien is characterized by the fact that it takes priority over all other types of liens, except for specific other claims such as those related to government tax obligations. This means that in the event of a foreclosure or property sale, any outstanding property taxes or assessments must be settled before satisfying other claims against the property. In contrast, judgment liens, general liens, and vendor's liens do not hold this level of priority concerning tax obligations. Judgment liens arise from court judgments and generally follow the property tax liens in terms of priority. General liens attach to all of a debtor's assets, while vendor's liens are related to the seller's security interest in the property sold, often tied to specific contractual agreements. Thus, the designation of superior lien accurately reflects the precedence of tax obligations over other claims.