13. Client A's mechanic's lien is dated March 2nd and recorded March 5th. Johnson's Client B's lien is dated March 3rd and recorded March 4th. A tax lien and a separate judgment were filed on March 10th. Which of the following has priority?
Answer: D
The tax lien has priority.
The tax lien has priority because it is typically given precedence over all other types of liens, including mechanic's liens and judgments, regardless of the dates they were recorded.
A) Client A's lien
Client A's lien, while recorded on March 5th and dated March 2nd, is a mechanic's lien. Mechanic's liens generally do not hold priority over tax liens, which are established by law to take precedence in order to secure government revenue.
B) Client B's lien
Client B's lien, dated March 3rd and recorded March 4th, is also a mechanic's lien. Similar to Client A's lien, it does not have priority over a tax lien, as tax liens are prioritized in the hierarchy of claims against property.
C) the judgment
The judgment filed on March 10th does not have priority over the tax lien either. Although judgments can sometimes have significant weight in lien priority, tax liens will supersede them, ensuring that government dues are collected first.
D) the tax lien
The tax lien is the highest priority lien in this scenario. It is a statutory lien that takes precedence over both mechanic's liens and judgments, regardless of the dates they were recorded.
Conclusion
The tax lien is definitively the correct answer due to its priority status over other liens such as mechanic's liens and judgments. Both Client A's and Client B's liens are subordinate to the tax lien, which is designed to ensure that tax obligations are met first in any claim against property.